Key index unlikely to gain sharply this week
By Wang Yanlin |
July 25, 2011, Monday
|
Print Edition
Print Edition
SHANGHAI'S key stock index may hover between 2,700 and 2,800 this week because tightening measures will still be in place as inflation shows little signs of abating.
"The market sentiment will remain cautious," said Zhang Li, an analyst at Huatai Securities Co. "Rising inflation continues to be a barrier to policies supporting manufacturing that can bolster a slowing economy."
Zhang said the stock market is unlikely to rebound strongly this week because investors may wait till a clearer policy outlook emerges.
Qian Qimin, an analyst at Shenyin Wanguo Securities Co, said he expects the market to be rather flat this week because there will be little new macroeconomic data to be released.
"The performance of shares will be steady because there will be limited news, either good or bad, to move the market," Qian said.
The Shanghai Composite Index fell 1.8 percent last week and ended at 2,770.79 on Friday. It was the first weekly decline in five weeks, triggered by tight liquidity and a manufacturing index which pointed alarmingly to a contraction.
Last Thursday, a preliminary reading of the HSBC Purchasing Managers' Index showed a contraction for the first time from a year ago when it reportedly stood at a 28-month low of 48.9 in July.
"The market sentiment will remain cautious," said Zhang Li, an analyst at Huatai Securities Co. "Rising inflation continues to be a barrier to policies supporting manufacturing that can bolster a slowing economy."
Zhang said the stock market is unlikely to rebound strongly this week because investors may wait till a clearer policy outlook emerges.
Qian Qimin, an analyst at Shenyin Wanguo Securities Co, said he expects the market to be rather flat this week because there will be little new macroeconomic data to be released.
"The performance of shares will be steady because there will be limited news, either good or bad, to move the market," Qian said.
The Shanghai Composite Index fell 1.8 percent last week and ended at 2,770.79 on Friday. It was the first weekly decline in five weeks, triggered by tight liquidity and a manufacturing index which pointed alarmingly to a contraction.
Last Thursday, a preliminary reading of the HSBC Purchasing Managers' Index showed a contraction for the first time from a year ago when it reportedly stood at a 28-month low of 48.9 in July.
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