CMIB-GK. Mr Song Seng Woon (Economic Analyst) said STI going to up by another 200 points, but not in a straight line up, personnally it going to hit STI 3,600 1st, along this line, alot of healthly profit taking.....
uncertainty will still rule the market for this week...waiting for clear signs :)...good luck
Posted: 10-May-2007 17:26
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market will be safe as till 11th May as we said two weeks ago...after that, we are not sure (no certainty about up or down)...good luck and trade carefully
No worry, just pump..I read an article saying that everyday approx 200k new account being open in China, A broking house researh revealed that they is a surge of inflow money into the stock market.
When gradually, lesser new account holder coming in, the market by then would saturated, by then that baloon had over swelled. Then it times to liquiduate and switch off your computer to go for holiday.
STI will hit 4000 pts, by Nov'07, shui shui boh bay chow...look at the amount of projects coming out next year and also chain of en-bloc sales, sure knock down and re-built, JB mega Iskander project too, etc,etc.
China's Bank of Communications soared more than 71 percent on its A-share stock listing Tuesday, untroubled by a 3.6 percent slump in the broader market as investors bought for quick gains.
Dealers said the heavy losses may have been sparked by BoComm's listing as investors would likely have sold off other shares to be able to buy into the mainland's fifth largest bank.
(For Hong Kong stock market reports, click [.HK]).
SHANGHAI, May 15 (Reuters) - China's main stock index slumped 3.64 percent on Tuesday as some investors cashed in their shares and locked in profits on fears of regulatory market-cooling steps, while the Bank of Communications made a strong debut.
"Now institutions are worrying about possible concrete steps to cool the market, and we expect they will happen," said Zheng Weigang, senior stock analyst at Shanghai Securities.
Bank of Communications' A shares soared more than 70 percent on their first day of trade in Shanghai, ending at 13.54 yuan. The offering had attracted a record 1.455 trillion yuan ($189 billion) in subscriptions.
BoCom's Hong Kong-listed shares climbed 1.90 percent to HK$8.59.
The Shanghai Composite Index ended at 3,899.178 points, sliding nearly 150 points -- the third-largest point drop this year. Losers outnumbered gainers by 627 to 219.
Turnover in Shanghai A shares was very heavy at 197.4 billion yuan, up from Monday's 180.9 billion.
With the index up 46 percent since the end of last year, several investors are cashing in profits and taking money out of the market, especially given concerns about authorities' moves to cool investor enthusiasm, such as a crackdown on speculation announced over the weekend.
Fred Hu, an economist and managing director at Goldman Sachs , said he believed the market was due for a correction but the outlook for the year was still very positive.
"Currently, the proportion of retail investors in the A-share market is too high but if we look at it in the long run, I believe the proportion of institutional investors will gradually increase," he said.
MARKET FEAR
Analysts also noted worries about a stock price bubble.
"Some traders fear there exists a bubble in the stock market now and the regulatory policies carried out recently further urged investors to cash in profits," said Zhou Lin, analyst at Huatai Securities.
Central bank adviser Fan Gang said in comments published in state media on Tuesday that monetary policy should seek not only to control consumer inflation but also to contain prices of stocks and property.
However, Erwin Sanft, a top strategist at BNP Paribas who favours the consumer, machinery, banks and utilities sectors, said China's mainland stock markets were still in a bull run and it was too early to worry about a bubble.
"Obviously valuations are high in the market," he told a media briefing in Hong Kong. "So we think investors should focus on sectors where there could still be earnings surprises."
BoCom's strong debut offered little help to its A-share peers.
The banking sector suffered heavy losses, with Shanghai Pudong Development Bank slumping 7.48 percent to 27.07 yuan and Minsheng Bank dropping 6.30 percent to 13.53 yuan.
Hangxiao Steel Structure Co. rose by its daily 10 percent limit for a second day, to 16.37 yuan, after news on Monday that the company and its top executives had been fined for improper disclosure of information, on apparent relief in the market that no worse penalties were imposed.
Baoshan Steel Co. , however, fell 4.89 percent to 12.63 yuan.
Hong Kong's blue-chip index climbed to a record on Tuesday morning, lifted in part by China's relaxing of restrictions on overseas stock investment.
Some traders said the easing of rules would spur interest in Hong Kong-listed H shares, which tend to trade at lower prices than China's A shares, although gains could be offset by appreciation of the yuan. ($1 = 7.68 yuan)
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67921-67940 of 69565
STI touch 3,527.36 pt (+14.96 pt)
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147.214 (3.64%)
What goes down must oso come up..
