Stocks News
- Index ends above 4,300 level again
Date: 26-Jul-2007 Sources: (Shenzhen Daily)
THE mainland's benchmark share index crossed the psychological 4300 level again yesterday, led by electricity producers on seasonal power demand and steelmakers due to modest valuations.
Analysts expect the market to go higher in the near term as many securities funds are building portfolios, but they also warned there may be profit-taking in coming sessions.
The benchmark Shanghai Composite Index, which tracks both A and B shares, ended up 2.7 percent at 4,323.97, the third time ever it has breached the 4,300 level.
The index had set an all-time high of 4,335.96 May 29 and hit an intraday peak of 4,312 June 20, with a period of corrections following each peak.
The Shenzhen Composite Index rose 2.4 percent to 1213.19.
Wang Junqing, an analyst at Guosen Securities, said investors who entered at high levels look keen to cash out, but the portfolio-building by securities funds will offset that.
'It seems that investor confidence is recovering and fresh money is pouring into the market,'Li Shiming, an analyst at Galaxy Securities.
Both Wang and Li expected the benchmark index to hit new highs in the short run.
Power firms posted solid gains yesterday on expectations of a possible relaxation of price controls in the sector and an increase in electricity consumption because of rising temperatures.
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