Category: Money Tips Date: 2007-01-12
Yesterday stock shocks finishing, Shanghai stock market tape re-test of 1600 points, the two cities is only 160 stocks rose more than the market Pudie signs are fairly obvious, a slight volume contraction. Benchmark Shanghai Composite Index finally closed at 1604.55 points, Shen Chengzhi finally closed at 4165.43 points.
Hot spots, non-ferrous metals ascribed to drop Awkwardness of Fund to continue to adjust, in Sinopec's petrochemical plates, driven by strong start, while the small plate index today fell to 7%. Plate, the petrochemical plate stood out, or nearly 1%, ST, cap, lower non-ferrous metal plates showed a lesser scarce resources, network games, transport, electronic information, education, media, aerospace, and military decline of the top digital TV plate.
Quotes in the current adjustment, both the main institutions or retail investors, should be on the shareholding structure of the necessary transfer warehouse, sell into rallies in the first half rose a huge variety of excessive speculation, intervention industry recovery, or not, the potential for a rich variety of subject matter, forward-looking grasp the mainstream of the second half of the new hot spot. In our view, the following five sections of the potential variety of bargains for investors:
The first hydropower unit. At present, China has entered the market price increases price cycle, the second round of the coal linkage will soon start a small price increase is a general trend. In terms of water relative to the thermal power, cost is not increased, prices benefit large, performance enhancing prominent, there is no environmental risk, an obvious advantage in the future is expected to show good growth, midline should have continued to follow the potential of cattle, of which, G Long electricity, Laurel electricity, Guizhou, etc., focus on the power source.
Second, iron and steel stocks. From the listing of the many iron and steel stocks this year, a quarter of last year's annual report and quarterly we can see that the steel industry in the fourth quarter of last year and this year's first quarter results to reach the bottom, a quarter of steel prices began to rise slightly, the industry is more clear signs of recovery, the fourth quarter of this year is expected to be the phenomenon of large-scale Yejiyuzeng. Plus iron and steel stocks are now generally low stock prices, stock prices below the net asset, it is the best time for industry mergers and acquisitions. There will be a good performance in the second half of the plate, is involved in risk, investment opportunities, a large plate. Stocks may be of concern mainly: G Baosteel, G Anshan, G New Steel and Vanadium, G TISCO, etc..
Third, the coal stocks. Coal stocks and non-ferrous metal industry are at the upper reaches of the same stocks are stocks of resources, in the context of coal linkage of coal is expected to maintain a pattern of slightly higher, although their performance potential for growth than non-ferrous metal stocks, but in the first half or not large, the overall price-earnings ratio is not high, and significantly lower than the international valuation standards afternoon with a revaluation of space. Can focus on large resource reserves, growth, and good G orchids, G Guoyang, G West, and coal.
Fourth, the transport unit. Airports and other transportation stocks due to earnings stability, and good cash flow and other factors favored by institutional investors, but the flat performance in recent years, in the first half of the stock market also ignored by mainstream funds, or far less than the broader market, its defensive investment makes them in the current adjustment Quotes are likely to become a haven for risk-averse mainstream funds, which emerged a better compensatory growth market, where fundamentals are a good track record there is growth potential, G Shanghai airport, Jiangxi Guangdong Provincial Expressway Development, Sinotrans Development, G on the Hong Kong and so on.
5 is a 3G unit. As the second half of issuing 3G licenses in China has become a foregone conclusion, with their huge investment for telecom equipment manufacturing, telecommunications, software development is a new 3G unit development opportunities, but 3G stocks mixed, the future only a handful of core technology, the industry status of outstanding individual stocks to get good returns from their performance is expected to show explosive growth. Can focus on the potential of varieties G ZTE, G Huasheng so.
