Category: Money Tips Date: 2006-11-20
Source: Kim Merrill Lynch Investment
1, Market Guide:
Shanghai stock market Tuesday in the peripheral sharp correction in the stock and futures markets and the accumulated profits of the pressure plate is too large, the sharp shock, the Shanghai Composite fell 50 points, or 3.05%, based wave up the largest single-day decline since Quotes. Turnover of 541 billion yuan, the two cities turnover of 890 billion yuan, another history, the amount of days.
Message level, the China Foreign Exchange Trade System announced yesterday 9:15: yuan central parity rate against the U.S. dollar to 1 U.S. dollar against 7.9982 yuan. This is the July 21, 2005 the reform of RMB exchange rate mechanism since the central parity for the first time "breaking eight." After breaking the trend for the eight, researchers generally believe that the yuan continues to appreciate will be the general trend. Expectations of continued appreciation of the yuan will no doubt raise the value of A shares subject to assess their attractiveness. In the first field trial will be made smoothly yesterday ended, G Cheung electrical applications for the issue of warrants issued without suspense through this review, and was published in today issued notice. Of equity warrants to lead the charge refinancing first single debut, in the absence, a year after refinancing the door announced the re-opened with immediate effect. In addition, according to central bank data released yesterday show that compared with previous months, "a step by step" growth, the increase in household savings deposits is slowing, since October last year, new residents of yuan savings deposits of at least a month 2,000 billion, of which in January this year, or even an increase of 500 billion yuan. Residents in April this year, the absolute amount of renminbi deposits, and in March the same, to maintain 15.3 trillion yuan. Professionals that the slowdown in population growth in yuan savings deposits and the recent stock market may be hot on the steady flow of money is from the bank's "pocket" in the flow of the stock market. The current domestic savings up to 14 trillion foreign exchange reserves reached 900 billion U.S. dollars, which formed the stock market's bull market provides great follow-up sources of funding.
By the Hong Kong Hang Seng Index and H share prices of the stock market as well as international metals futures prices huge shocks, Hu Zhi opened it all the way down, fell more than 40 points, followed by a counter attack and for a time although multiple record high, but the short side is clearly come prepared to suppress the intensity started to increase significantly broader market once again dropped, non-ferrous metal plate directly affected by the international futures market due to the impact of a comprehensive crash occurred, due to the historical rise of this plate is too large, if the situation reversed, its destructive not be discounted, its recent market sentiment is no doubt over-stimulated the formation of a considerable impact. Sinopec is also of concern evident in the adjustment of state, yesterday, already weak real estate, financial sector remain at finishing among the other pre-or a larger number of commercial real estate, new energy stocks have also experienced significant adjustment in the fall decrease in the forefront of the stocks increased, apparently ascribed to the market through repeated short-term risk of starting to show. At the same time, the major funds are also open up a new battlefield, electronic information, online games and other early stage technology stocks are relatively quiet start the signs, especially in technology stocks early today, shares of the leading reform ex Haihong Holding jumped more than 40%, if the change before the last day to buy shares, equivalent to have double effects of such a huge profit greatly expand the imagination of space science and technology stocks, and other technology stocks such as China micro-electronics, National Chiao Tung University Science and Technology, also have upside. Since this wave of Quotes, mainly around the resources of the class revaluation start, as the leading resource or excessive accumulation of non-ferrous metal plate into the rest, around the theme of independent innovation of technology stocks started the speculation is likely to be the next Wave Quotes of the theme. At the same time aerospace industry, still retains its strong liquor plate change, while the electric power, iron and steel, coal and other early stage or small, there is fundamental support for the stability of the overall performance of individual stocks. Overall Stock division is very conspicuous.
Tuesday tape emerged a huge increase in oscillation is just the way a normal bull market order is conducive to profit-plate digestion, a new high for the stock to lay a solid foundation. As the bull market led to the basic factors of this wave remains unchanged, and thus continue to repeatedly take long-term pattern of cattle will not change. The market outlook is expected after the broader market will once again be poised upside.
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2, the operation recommended that:
1, position: 60%
2, attention: cheap oversold stocks
3, hot Analysis:
By the Hong Kong Hang Seng Index and H share prices of the stock market as well as international metals futures prices huge shocks, Hu Zhi opened it all the way down, fell more than 40 points, followed by a counter attack and for a time although multiple record high, but the short side is clearly come prepared to suppress the intensity started to increase significantly broader market once again dropped, non-ferrous metal plate directly affected by the international futures market due to the impact of a comprehensive crash occurred, due to the historical rise of this plate is too large, if the situation reversed, its destructive not be discounted, its recent market sentiment is no doubt over-stimulated the formation of a considerable impact. Sinopec is also of concern evident in the adjustment of state, yesterday, already weak real estate, financial sector remain at finishing among the other pre-or a larger number of commercial real estate, new energy stocks have also experienced significant adjustment in the fall decrease in the forefront of the stocks increased, apparently ascribed to the market through repeated short-term risk of starting to show. At the same time, the major funds are also open up a new battlefield, electronic information, online games and other early stage technology stocks are relatively quiet start the signs, especially in technology stocks early today, shares of the leading reform ex Haihong Holding jumped more than 40%, if the change before the last day to buy shares, equivalent to have double effects of such a huge profit greatly expand the imagination of space science and technology stocks, and other technology stocks such as China micro-electronics, National Chiao Tung University Science and Technology, also have upside. Since this wave of Quotes, mainly around the resources of the class revaluation start, as the leading resource or excessive accumulation of non-ferrous metal plate into the rest, around the theme of independent innovation of technology stocks started the speculation is likely to be the next Wave Quotes of the theme. At the same time aerospace industry, still retains its strong liquor plate change, while the electric power, iron and steel, coal and other early stage or small, there is fundamental support for the stability of the overall performance of individual stocks. Overall Stock division is very conspicuous.
4, Stock Market Gold Rush:
G power (600,021): Institutional Kong Pan Biao pull faucet
G power (600,021): The company is located in China's power shortage in Shanghai, Jiangsu and Zhejiang and other key areas, with four wholly-owned power plant in Shanghai, one of the largest independent power companies, the Shanghai power grid has been in short supply, which provides for the development of the company extremely favorable conditions. Major shareholders to vote in the domestic CLP Power Group has a strong strength, affected the company in the industry in sustainable development has been well protected. Investment of up to 9.3 billion expansion of the Shanghai Waigaoqiao Power Plant Phase III project has recently won the State Development and Reform Commission approved by the G Shenergy, Shanghai Electric Power, GD Power three listed companies, respectively 40%, 30% and 30 % of the proportion of funding. The implementation of the project's future performance will be raised to lay a solid foundation for sustained growth.
The company "is based in Shanghai, to expand east, strengthening and expanding its" development strategy under the guidance has come out of Shanghai, and initially formed the three provinces of East China (Jiangsu, Zhejiang, Anhui) a city of strategic layout. The company's installed capacity of 3.5292 million kilowatts, the company and construction of this planned project by the end of 2007 and the grid, the installed capacity will exceed 5 million kilowatts by 2010, companies to compete for control capacity has reached 10 million kilowatts. This is the company's expanding market is a solid foundation in 2005 the Company issued 1.5 billion in short-term financing bonds to raise funds returned by the bank's loans, only this one, it saved the company more than 1,000 million in interest payments.
2005 earnings per share reached 0.25 yuan, while the first quarter of 2006 earnings per share reached 0.06 yuan, net profit grew over 100%. Dynamic price-earnings ratio is currently only 16 times. First quarter of 2006 reports show that including the Social Security Fund 002 Portfolio, Hing and securities investment funds and other heavily loaded with or Masukura, fully demonstrated the value of their investment of institutional investors a high degree of recognition.
The secondary market, the stock of net assets per share reached 4.07 yuan, while the current share price is less than 5 yuan, the value can be described as grossly underestimated. The stock was diluted to form a platform that spans several months collating, volume repeatedly zoom, display bodies to intensify their grab chips. After full correction poised after Tuesday contrarian strength, showing Xi Pan has ended, the market outlook will start the acceleration of highly explosive surge in market, can be great concern.
5, stocks recommended:
G power (600,021): The company in Shanghai, one of the largest independent power companies, the Shanghai power grid has been in short supply, which provides for the development of the company extremely favorable conditions. Company's 2006 first-quarter earnings per share reached 0.06 yuan, net profit grew over 100%. The secondary market, the stock of net assets per share reached 4.07 yuan, while the current share price is less than 5 yuan, the value can be described as grossly underestimated. The stock was diluted to form a platform that spans several months collating, Tuesday contrarian strong, the market outlook is expected to start the acceleration of highly explosive surge in market, can be great concern.
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