Rate fears likely to hold back shares
By Feng Jianmin |
June 13, 2011, Monday
|
Print Edition
Print Edition
ANALYSTS said there will be no significant rebound in the Shanghai stock market this week due to concerns of a hike in interest rates and weak economic data.
The major economic data for May, including inflation, investment and consumption figures, will be released tomorrow.
A report by China International Capital Corp said the Consumer Price Index, the main gauge of inflation, will rise 5.6 percent in May from a year earlier as recent droughts across China have driven up food prices.
Investment and new loans may have slowed in May, the report added.
"Monetary policies will not ease with inflation still high," said Zeng Xianzhao, an analyst at Everbright Securities.
"Trading will not be active due to heavy inflationary pressure and concerns over poor company performances," Zeng added.
As of last Thursday, 759 listed companies had released previews of interim earnings. Of those firms, 77.2 percent estimated growth in profits and 21.3 percent forecast either a slowdown or loss, according to a survey compiled by Wind Information Co.
Metal producers, chemical firms, construction material makers, textile and clothing companies and transport equipment manufacturers are expected to see faster growth than other sectors, the survey said.
Manufacturing expansion in May was the slowest in nine months, the purchasing managers index showed.
Growth in May's exports was slower than expected as demand weakened overseas, especially in the United States and Europe. However, stronger than anticipated growth in imports indicated stable domestic demand, an Industrial Securities report said.
"An economic slowdown is a minor concern, compared with inflation," Everbright's Zeng said.
The major economic data for May, including inflation, investment and consumption figures, will be released tomorrow.
A report by China International Capital Corp said the Consumer Price Index, the main gauge of inflation, will rise 5.6 percent in May from a year earlier as recent droughts across China have driven up food prices.
Investment and new loans may have slowed in May, the report added.
"Monetary policies will not ease with inflation still high," said Zeng Xianzhao, an analyst at Everbright Securities.
"Trading will not be active due to heavy inflationary pressure and concerns over poor company performances," Zeng added.
As of last Thursday, 759 listed companies had released previews of interim earnings. Of those firms, 77.2 percent estimated growth in profits and 21.3 percent forecast either a slowdown or loss, according to a survey compiled by Wind Information Co.
Metal producers, chemical firms, construction material makers, textile and clothing companies and transport equipment manufacturers are expected to see faster growth than other sectors, the survey said.
Manufacturing expansion in May was the slowest in nine months, the purchasing managers index showed.
Growth in May's exports was slower than expected as demand weakened overseas, especially in the United States and Europe. However, stronger than anticipated growth in imports indicated stable domestic demand, an Industrial Securities report said.
"An economic slowdown is a minor concern, compared with inflation," Everbright's Zeng said.
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