Stocks News
- Share index ends up as blue chips soar
Date: 1-Jun-2007 Sources: (Shenzhen Daily)
DOMESTIC shares bounced back from initial lows to settle solidly higher Thursday as securities funds sought to buy blue chips on dips.
Analysts generally expect the market to stay volatile in the near term, with bargain-hunting impetus on the one hand but also caution on high-flying share valuations and further tightening.
The benchmark Shanghai Composite Index, which tracks both A and B shares, ended up 1.4 percent at 4109.65, after a turbulent session between 3858.04 and 4178.11.
It fell 6.5 percent Wednesday on moves by the Ministry of Finance to raise the stamp duty on stock trades to 0.3 percent from 0.1 percent, the first increase in the tax in a decade.
The Shenzhen Composite Index closed down 1 percent at 1187.51 Thursday, but well off an intraday low of 1123.77.
'Some new funds have been buying blue chips to build portfolios since late yesterday,'said Wang Sheng, a strategist at Haitong Securities, adding funds don't like to hold large cash amounts in their portfolios for long.
Wang said he expects the Shanghai index to move around 4000 in coming sessions with the likelihood of sporadic pullbacks throughout.
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