Stocks News
- Analysts see stock wobbles
Date: 26-Mar-2007 Sources: (Xinhua Online)
Shanghai stocks may move back and forth this week as investors are set to become cautious after regulators stepped up efforts to clamp down on stock market manipulation.
Analysts said large-cap firms may again lead the next round of tally on the upcoming launch of stock-index futures, which will track the country's broadest blue-chip index.
The Shanghai Composite Index, which covers yuan-denominated A shares and hard-currency B chips, closed 0.10 percent up at 3,074.29 on Friday, an all-time high.
The barometer sailed in all the five sessions last week and chalked up a combined climb of 4.9 percent.
Industry sources said Chinese regulators had been revving up pace to battle against stock-related crimes after a booming market spurred capital inflows.
The China Securities Regulatory Commission has started a probe into Hangxiao Steel Structure Co over possible insider trading after its shares surged sharply prior to a huge deal announcement.
An investigation may also be conducted into senior officials at GF Securities Co who are suspected to have been involved in insider trading before the broker unveiled a bid to take over a Shenzhen-listed firm.
'Some low-valued stocks have posted irrational gains recently, which sparked regulatory concerns over stock-price rigging and little awareness of risks,' said Zhou Lin, a Huatai Securities Co analyst.
'Investors should be cautious against firms with sudden rises and the market may start to fluctuate.'
China is set to launch its first equity-index futures contracts late in the second quarter based on a gauge that tracks the biggest 300 companies listed in Shanghai and Shenzhen.
Market watchers noted as the date draws near that fund managers may build up heavy positions on the underlying blue chips with an aim to trade the futures contracts as soon as the business starts.
'A short-term correction is needed to digest the recent rally,' said Zhao Yuanhui, a Donghai Securities Co analyst.
'But I believe the market will likely continue to head north on the back of performances in heavyweight counters and quality chips.'
The index may move in a range between 3,015 and 3,150 this week, Beijing Shoufang Investment Consulting Co said. The consultancy expects better performances in technology and telecommunications firms.
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