Category: Money tips Release Date: 2006-12-29
Source: Ping An Securities Author: Xian-Ming Li
Taiwan stocks to change the old and new hot ride with 3-yang effect of singing after the stock shot up suspect in ports, highways, steel and other new hot varieties and G Maotai, G Zhenhua and other early varieties have led the strong support, Monday A shares sharp rebound in the market, thereby also raising investor expectations of future market performance. We believe that the operational state of the market to determine hot spots, as well as the short-term A-share market has hit a stage again with a new high potential.
Variety strong adjustment pressures slow
A-share market began to adjust in mid-May mainly due to non-ferrous metals futures prices on the international market fluctuations, leading to a strong pre-resurgence of non-ferrous metals varieties under heavy profit-taking pressure.
However, the author's opinion, on the one hand, experience short-term adjustment, the market's profit-taking pressure reduced significantly. As the market leading decliners in the recent species, a number of non-ferrous metal stocks may decline in rate to meet or exceed 30%, short-term adjustment basically put in place; the other hand, the recent rebound in the international market, non-ferrous metals futures prices, which makes the drive the market to a large extent adjustment has been to eliminate negative factors. In addition, the early lead in the market as the main species, such as the G Maotai, G Zhenhua strong stocks such as strength, indicating that these strong types of short-term adjustment come to an end, to constitute a clear support for market confidence.
Emergence of new hot spots to enhance popular
We see that in the early lead in the market of non-ferrous metals, real estate stocks may have started to adjust to circumstances, the recent market from time to time there are new hot spots emerging, such as steel, highways, ports and other early stage has clearly failed to gain broader market, but the advantage of parity prominent species, the recent attention by the incremental funding, have gone against the tide high. If G Handan Iron & Steel, G, on the advantages of Hong Kong stocks, Monday also take daily limit at close.
The continuous emergence of new hotspots effectively increase the profitability of short-term market effects and active degrees, constitute a support to the market trend also shows the strong will of additional funds into the market, it has also become the future market to continue strong support.
In addition, as a short-term investors, the focus of widespread concern, share reform has brought to the market performance of the wealth effect is still outstanding. If Monday resumption of the G * ST Duojia sharply up 82.31 percent at the same time, G Beijing tour, G re-100 in the stock to resume trading on the first day of such shares outstanding performance in the short-term earnings effects are obvious. Resumption G shares outstanding performance to further enhance the market for short-term profit opportunities, and strengthen investor enthusiasm for stocks change the concept of treasure hunting, but also will play a positive role. The author's view, the future market share around the reform is not carried out a series of varieties of speculation, is still expected to be stimulating and maintaining investor confidence, an active market for one of the main factors.
Supported by technical factors significantly
We have seen and experienced a substantial adjustment in the short term, the current index of the technical indicators restored the low, KDJ, MACD and other indicators Alice heads up, in the low and gradually form a Jin Cha. At the same time, in the fall to below 5, MA, the stock rebounded rapidly, and to regain a 5-day moving average shows that the adjustment of pre-market is still strong, the technology index shape did not suffer too much damage. In addition, the terms of trends, the current index is still running on a clear increase in channel, the market an ideal long-term trend. Also, average system continues to form a long array, but also the future trend of the market constitutes a strong support.
On the whole, we believe that the current A-share market technical adjustments to basically put in place. Investor confidence in the market remain, the hot new market emerging, as well as earnings effects were still outstanding support, we expect the short-term index already has the potential to re-strength, especially for iron and steel, highways, ports, machinery and equipment, etc. valuation advantage of prominent, obviously been concerned about the incremental funding.
