Category: Money Tips Date: 2006-09-09
Source: Kim Merrill Lynch Investment
1, Market Guide:
Substantial upside broader market Thursday in Shanghai and Shenzhen, the Shanghai Composite closed at 1606 points, rose 27 points, on turnover of 13.9 billion, significantly larger than yesterday. Shen Chengzhi closed at 3905 points, rose 52 points.
Message level, the central bank recently issued "in the second quarter of 2006 China's monetary policy implementation report", expert analysis, while the report strengthened the tone on inflation risks, but there is no point to very severe, so the overall inflation rate the central bank may also be take some time to wait and see. In this way, the recent increase in interest rates for deposits and loans may not be too much. According to media reports, published semi-annual report the company's main business income still maintained rapid growth momentum, an increase of about 13.75%. But the main revenue growth was somewhat slower than in previous years, profits of listed companies has not significantly increased. In addition, the China Securities Regulatory Commission since the May release "listed company's securities issued Management Measures" after the shares of listed companies issuing encountered many new problems, the recent issuance of the Commission will refine directed the relevant rules and will be The "Guide" in the form to be specified. The SFC will increase the threshold for additional directional, directional additional pressure on the market will be greatly reduced. We believe that, although the mid-year report showed a growth trend of slowing down, but the stock after the reform of corporate governance structure and because of the interests of all shareholders, will cause the same results there is a real return and the release of the performance potential, which will be reflected in the future, and therefore do not have the right reported that the overall situation is too pessimistic. The Commission directed additional specifications and suppress the impulse means for misappropriating public companies, obviously is a good secondary market.
A rebound Thursday in Shanghai and Shenzhen to undertake broader market trend, the strong high. Sinopec led the plate to become the vanguard, Sinopec share reform has not been done, the market for its share reform program is expected to have a good, and the market rumors of its subsidiary company's privatization will be carried out in September, in this context, the Department of Sinopec stocks recently significantly stronger today, once again struggling to China Petrochemical pulled, while the Shanghai Petrochemical Pre-losing in the mid-year report cases where the break up, Sinopec, Department clearly has big money involved in individual stocks, and a big theme support, so afternoon is still worthy of attention, while the Sinopec Department of stocks rises, the upward bound of the index from positive impetus is also noteworthy that the Bank of China, its market has been described as "a Spring River Flows East", with the H share price is now a serious inversion, the recent there are obvious signs of bottoming, once the Bank of China rebounded sharply bottom, is sure to further promote the role of the formation index. From the disk of view, non-ferrous metal plate full active in precious metals market, again due to higher overseas, while domestic non-ferrous metal plates have also been seriously oversold, so a rebound once the intensity is quite fierce, but in order to G in the food to, G Wanke as the representatives of the estate plate and it took a strong rebound after the sharp correction. In addition, because of the Disney theme G Jielong daily limit that even pulling the stimulus, Shanghai stocks have also have a local re-active, continuous appreciation of the RMB against the backdrop of a city land resources, a huge revaluation of local stocks in Shanghai are still worth a high degree of concern.
Generally speaking, as the market gradually active market confidence began to have increased, pre-lighten up a fund in a number of valuable stocks decline has been under the covering of large signs, and the new Development Fund, has begun to target stocks and some value in the -type stocks on their portfolios ahead of this week, at the same time after the issuance of new shares will be temporarily slowed down the rhythm, all of which contribute to further warming broader market. The index effectively break up the 10 line, indicating a rebound of space is being widened, and even ruled out the possibility of reversal.
Afternoon broader market is expected to continue to upside.
2, the operation recommended that:
1, position: 60%
2, attention: cheap oversold stocks
