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Market seen to continue climb

SHANGHAI'S key stock index is likely to fluctuate this week after it gained for five days last week, but brokerages are confident that the market will keep its upward movement.

The Shanghai Composite Index added a combined 4.84 percent, or 132.93 points, last week to end at 2,880.49 points on Friday.

"The market has been strong in the past few (trading) days and some of the investors may take profit before there are clear signs of economic recovery," China Merchant Securities wrote in a research report.

"Initial public offerings will have limited effect on investors and we think property developers, financial shares and coal producers may outperform the market," wrote the report.

Guilin Sanjin Pharmaceutical Co aims to raise 600 million yuan (US$87.7 million) by selling 46 million A-shares when it becomes the first company to launch an IPO after a nine-month hiatus.

"Despite fluctuation in the short term, the market will maintain its upward trend in the second half of the year," a CITIC Securities research report said.

"There will be less deflation risk in the third quarter and some of the heavyweights are undervalued at the moment, which offer investment opportunities," the report said.


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