Category: Money tips Release Date: 2007-01-20
Source: Huatai Securities Author: Dong Bo-ming
The Shanghai index closed 1806.64 points, up 1.46 points, Shenzhen City, into a mean 4515.36 points, up 62.27 points. Once the morning of the strong broader market trend, the Shanghai 50 Index on the Shanghai Composite Index rose significantly greater than that mainly rely on high index fund Shigekura large cap blue chips and the blue-chip blue-chip promotion, Shanghai Pudong Development Bank rose as much as 6%, China Merchants Bank and China's Sinopec, and China Vanke A resumption of the right to a new record high share prices, the fund Awkwardness Maotai, TeamSun, Suning Appliance and other gainers. However, as the market for the positioning of the ICBC listing, as well as the impact of the latter part of the trend on the market there is a big differences in individual stocks in the broad based, appears after differentiation, even in the broader market was up the process, the number of decliners by more, which makes tape upside fatigue, With the blue chips started to rest, stock index finishing down.
From the disk observation, although the stock Wednesday to continue to hit new high, but the disk hot spots do appear more dispersed, financial stocks struggling to pull not only failed to effectively stimulate the popular, anti-market instability triggered the sell-off continue to gush. While the main force in Guizhou Maotai and other high-priced stocks on the move, it seems not very effective, showing that the market Senpachi or above, or ICBC said that in the context of the upcoming, differences started to increase. Continuation of the morning stocks broader market differentiation, vibration finishing pattern, in addition to underperformance as shares, stocks and short-term or large the problem is beyond the fundamentals of individual stocks in general, non-ferrous metal plate to join sell into the ranks of Guanlu shares fall, cloud aluminum shares of Jiaozuo Wanfang decreased significantly Tianchen shares, Guangyu development, real estate stocks also performed poorly. Jinan Iron and Steel in the tape when the times of adversity made to adjust force, reaching a record high, Hongdu Aviation adverse economic rebound has also led to some of the aerospace defense industry stocks stronger plates.
From the fundamental point of view, asset injection, two tax merger, equity incentive and other effects of institutional change has just come into existence, the quality of listed companies will therefore be a qualitative leap. ICBC's listing on the eve of the broader market rose on the market for further properly take another another interpretation. From the Hong Kong market point of view, the dark disks were lower than the ICBC IPO price 15% higher, while ICBC's international subscription to more than 3000 billion U.S. dollars, and even the market had underpriced the voice of ICBC, which show that China's financial stock market is very bullish , broad based financial sector. International oil prices and other factors contributed to the rise of Sinopec, Sinopec led the biggest gainers, while The Awkwardness of Fund began to stabilize all the reasons broader market higher. On the other hand, in addition to ICBC's A shares will log off, this week will face the arrival of the peak reduction, and the Central Financial Work Conference, and many other uncertainties, which are likely to stock shocks are large. Of course, we should also see that support for market factors, has not changed for the better long-term, such as the decline in international oil prices, corporate profits outside the expected improvement and a strong stock market performance of stock indexes will also form a supportive role. Therefore, the overall market outlook broader market upside potential "virtual up" phenomenon, while the stocks of local structural adjustments will become more prominent. Broader market is expected to be around 1,800 points in afternoon wide shocks. Investors should note that control the tape position to avoid the risk of shocks in the process of individual stocks.
