Category: Money Tips Date: 2006-10-20
Source: Kim Merrill Lynch Investment
Thursday broader market rebound. Early benchmark Shanghai Composite Index to 3787 points Tiaokonggaokai, a small back up again after detection, late acceleration pulled up. Zhong Pan index closed at 3890 points on turnover of 180 billion yuan, compared with the previous day's flat.
Message level, the renminbi exchange rate yesterday, in one fell swoop break 7.64 resistance level. Authorized foreign exchange trading center, according to the People's Bank figures released yesterday, the yuan central parity rate against the U.S. dollar for 7.6398, up 39 basis points higher than the previous session. So far, the reform on the yuan against the dollar since a new high record of the 38th has been rewritten. According to Shang Zhengbao news, for the attention received by the market speculation capital gains tax, our country there is no capital gains tax plan. Even the introduction, it must fulfill the appropriate legislative process, from the move to the country's top legislature, the final decision for a long time, and a high degree of transparency in the legislative process. The present levy of the basis and conditions are not available, so capital gains tax can not be easily introduced. This will help to restore investor confidence. The supply of funds, apart from Invesco Great Wall, GF, Yimin other four new funds approved, Jijinjingbo "Fengzhuan Kai" and Po Ying Pan-coast fund ongoing marketing programs are also split was approved this month, about 600 100 million fund is expected to approach the market delivery of ammunition.
Secondary market, the broader market Thursday closed out both large Yang Xian, big size stocks rally. The main blue-chip stocks intraday indicators continue sideways. Bank of China, China Merchants Bank is not significantly pulled up the market a strong momentum to do more, mainly from the oversold stocks rebounded sharply. From Handicap to see, the two cities have more than 100 stocks closed limit-reported. Hot spots are widely distributed in the real estate, construction engineering, chemical industry, electric power and many other varieties. The stock fell less than 1 into, mainly in shares of the main ST. After this baptism, the market transfer of funds to blue-chip stocks signs are clear. Overall stocks broad based pattern of the two cities, but Toronto Canada is not very prominent, long after the retaliatory pulled up at the oversold process. Since the broader market shrugged off since Tuesday, stocks more than 20% of the increase. Bargain-hunting funds in lucrative cases, is likely to decisively out, so afternoon will not be able to avoid the shock pattern of individual stocks. 3900 benchmark Shanghai Composite Index at the top of the pressure is obvious, and soon faces 30-day moving average of repression, while the volume has failed to effectively zoom, which inhibit the market's rebound height. Therefore recommends that investors adjust the position to take advantage of a rebound structure and rallies out of position appropriate control.
Taken together, in many bullish support, the Shanghai and Shenzhen appeared retaliatory Thursday rally, the market is extremely active in the atmosphere. Afternoon broader market is expected to inertia ascribed to, but because of the amount can not actively cooperate with, so indexes rebound height should not be too optimistic. Comprehensive judged: Bullish
