Category: Money Tips Date: 2007-06-13
Source: Kim Merrill Lynch Investment
1, Market Guide:
Shanghai stock market Wednesday afternoon broader market rebounded somewhat after the first test a low down, the Shanghai Composite affected by the poor performance of the Bank of China dropped the final five points, turnover amounted to 30.8 billion, significantly larger than that Tuesday. The Shen Chengzhi was up 27 points, the Bank of China Shanghai stock market index listing of distortion once again illustrated. Message level, the authorities said recently that "Although for some time, the T +0 trading system will put the speculation intensified, but this did not receive relevant support and recognition, T +0 system is likely to put on hold." We believe that, T +0 put on hold for the market is favorable, because the throw increased market speculation of whether or not this moral evaluation point of view, purely from a market point of view, T +1 can not be sold to buy the same day, in fact it is locked on an ultra-short-term chips, is conducive to market stability, in the bull market has fueled the T +1 is no doubt in the function. Will contribute to the T +0 is a super short-term behavior, the market will loose chips is not conducive to sustained bull market rise. And therefore management with a T +1 trading systems is undoubtedly the care of the market, care of the bull market of the wise.
Wednesday's tape to maintain a strong pattern of oscillation up yesterday, we pointed out that the appreciation of the RMB against the backdrop of accelerating appreciation of the yuan will benefit from the concept of the main line of recent speculation, especially in real estate stocks are the most direct beneficiaries is expected to once again out of the Great Quotes. From today's disk read, and indeed the real estate stocks whole line again, just like a heavy wave of big move taking the posture, especially in Shenzhen, the local property stocks leading shares in the absolute G Wanke came back to full range of upside, driven, but also directly contributing to the apparent strength of the Shen Chengzhi. As new data show that foreign trade surplus increased to increase, thereby further increasing pressure on RMB appreciation, the foreign exchange market broke 7.99 yuan also confirmed that, and prior period adjustments in property shares and they are quite full, and therefore have met the conditions for the re-out of the main Shenglang Investors can one of the leading stocks such as G Wanke and so on to focus on. In addition, commercial, paper, aerospace, and other revaluation stocks may continue to pay attention. Non-ferrous metal plate and then was strong, G Jean, G Deng Jun strong upside your research without even realizing it many of the non-ferrous metal stocks has returned to previous high and even hit a new high, the reason first and then pick up an international precious metals prices rise secondly, to mid-year report of the publication period is approaching, the vast majority of non-ferrous metal stocks mid-year report will be a significant increase in performance, the current rally also reflects the anticipated mid-year report. In addition, the aerospace industry, engineering machinery both by the policy of a high degree of support, fundamentals remained robust in the main plate has a big presence, today continues to show strength, such as the G space, G Shipyard, G force, G Xiagong Dengjun strength upside, these two plates will remain long bull pattern. Mid-year report by Yu Ying Pre-market stocks continue to be sought after, such as the Mau-based real-Hua, G Haeinsa manifestations of a very bright. However, in the pre-mining stocks the opportunity to improve their profit margins, we should try to look for relatively small gains, while in the second half and even the next few years, continued growth potential of stocks, as this will be a greater potential for sustained growth.
Broad market Wednesday in Shanghai and Shenzhen continued to show a steady pattern of strong profit effect of re-expression, which is favorable to keep the market strong. Currently has the deep meaning of leading indicators has taken the lead KLCI hit a new high, while the Shen Chengzhi also created an excellent break upward trend by the Bank of China listed on the Shanghai Composite despite the impact of the trend slightly lagging behind, but went straight up break another record high 1,800 points is inevitable.
2, the operation recommended that:
1, position: 60%
2, attention: cheap oversold stocks
