Category: Money tips Release Date: 2006-08-11
Source: Huaxi Dushi Bao Authors: Li Dongsheng
Last week, the Shanghai Composite rose 55.51 points, or 3.44% weeks, not only in the 1695-point intraday record high of Quotes of the round, but also a record closing high of 1669 points. It is noteworthy that long-short disk contention last week, the intensity has increased, along with Qian Qi approaching, sharp shock may appear again.
Technical side: an upward trend in resistance to PK Qian Qi
Technology trends, at present, the Shanghai Composite Index has maintained an upward trend in near-perfect, is encouraging. For example, K-line from the Japanese perspective, the Shanghai Composite since last December has been the formation of an upward trend, although early March and mid-May there have been two quick adjustment index, but quickly stabilized and re-shock climbed, and the index rose at a rate gradually larger. Last week, in particular, the broader market has its own run to a steady pattern of reaching a new high. Even from the weekly K-line view, stock indexes were also to keep pace with the way on the 5th line has maintained an upward trend.
However, behind the strong upward trend and should not be overlooked is the stock correction since last week, faced with the biggest round of Quotes resistance. First 1700 point integer-related approaching, last week, stocks in 1695, the highest point touched down after a larger, indicating the role of this resistance began to appear. Secondly, above the 1700-point at around 1750 since the end of 2001 to run multiple indexes at the top-intensive area. Therefore, long-short with a fierce battle in the more likely.
Market side: the high-profile diving VS M & A heating up
Last week, stocks in some sectors experiencing high disk platform diving has become the primary means of sell into the empty side. First, non-ferrous metal plate stocks rebound after last week's record low in;, followed by an abrupt drop in the real estate section in the Friday, for example,
G OCT, G the grain land, G Merchants recorded a decrease of over 9%. These two plates is clearly constrained by international futures prices fell and the state's macro-control policies influence apparent downward trend. However, as the early lead in the market in two main sections, from the fall of the intensity and radius of view, neither pose a significant impact on the market.
Diving hot spots in the early time to the main themes of steel mergers and acquisitions speculation began heating up last week, the demonstration effect in the steel stocks, the low-cost re-stock a comprehensive active. Shenyin Institute believes that the overall market, asset restructuring, mergers and acquisitions, will be in June, or even second half of 2006, A stock market's hottest topics. Taken together, the speculation in the new theme became clear later, the impact of changing hot spots will also be able to digest.
Financial side: to increase the supply of capital adequacy VS
Sufficient funds are market driven round Quotes recognized as the greatest force. From the Shanghai stock market point of view, in the May 14 hit a round Quotes of the largest volume of 54.1 billion, the turnover shrinking to 230 billion once, but last week's market turmoil has its own run-process, the volume gradually enlarge, Friday has been picked up to 45.3 billion for the current round of Quotes of the third-largest single-day turnover. The industry believes that the situation of ample funds in the short term remains, the early effect of huge amounts of money into the stock market does not quickly disappear.
On the other hand, the supply of the stock market is showing the expected increase in the near term trend. In addition to refinancing addition, IPO will be released officially began today, the workers would bring international distribution of funds is highly concerned about the traffic diversion effect. Meanwhile, Fa Shenwei noticeably accelerated the pace of work, as at present, four companies have adopted IPO, the market can smoothly absorb the impact of new from the old remains to be seen.
Big trend: Qian Qi big engagement of the shock is inevitable
Taken together, the current index near the 1,700-point mark, the market has intensified a wide range of conflicts, the resulting long-short competition may also increase the intensity. Shocks that might be coming, analysts believe investors should focus on structural adjustments to shareholders, focus on hot spots of reorganization and acquisition opportunities, to avoid non-ferrous metals, and real estate gains a huge variety of pre-fried; also may consider taking on new shares subscription to wait for further clear trend.
