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Win Streak May Continue For China Stock Market

The China stock market has finished higher in three straight sessions, gathering almost 20 points or 0.6 percent along the way. The Shanghai Composite Index now rests just beneath the 3,385-point plateau, and it may tick higher again on Thursday.

The global forecast for the Asian markets is mildly positive, again riding continued strength from crude oil prices. The European and U.S. markets were slightly higher and the Asian markets figure to follow suit.

The SCI finished slightly higher on Wednesday following mixed performances from the financials, properties and insurance companies.

For the day, the index added 4.66 points or 0.14 percent to finish at 3,384.15 after trading between 3,366.54 and 3,387.14. The Shenzhen Composite Index added 8.77 points or 0.44 percent to end at 1,994.98.

Among the actives, Bank of China shed 0.48 percent, while Industrial and Commercial Bank of China collected 0.17 percent, Agricultural Bank of China lost 0.52 percent, Vanke climbed 1.98 percent, Gemdale eased 0.16 percent, China Petroleum and Chemical (Sinopec) and PetroChina were unchanged, China Life dipped 0.71 percent and Ping An Insurance added 0.47 percent.

The lead from Wall Street suggests mild upside as stocks wound up slightly higher on Wednesday, bouncing back and forth across the unchanged line before finishing slightly higher at fresh record closing highs.

The Dow added 39.32 points or 0.18 percent to 22,158.18, while the NASDAQ gained 5.91 points or 0.09 percent to 6,460.19 and the S&P was up 1.89 points or 0.08 percent to 2,498.37.

The choppy trading came amidst uncertainty about the near-term outlook for the markets following recent strength. Traders also stuck to the sidelines ahead of key economic data later this week.

Traders kept an eye on Washington, where House Speaker Paul Ryan, R-Wis., said Republicans will release an outline of their tax reform plan the week of September 25th.

Energy stocks saw considerable strength, with an increase by the price of crude oil generating buying interest. Crude oil for October delivery jumped $1.07 to $49.30 a barrel.

Closer to home, China will provide August numbers for retail sales, industrial production and fixed asset investment later this morning.

Retail sales are expected to rise 10.5 percent on year, up from 10.4 percent in July. Output is tipped to gain an annual 6.6 percent after rising 6.4 percent in the previous month. FAI is pegged at 8.2 percent, down from 8.3 percent a month earlier.

by RTT Staff Writer

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