Key barometer seen to fluctuate

By Ding Yining  |   2009-6-29  |     NEWSPAPER EDITION

SHANGHAI'S key stock index will fluctuate in the near future, analysts said.

The Shanghai Composite Index added a combined 1.66 percent, or 47.72 points, in the past week and closed at 2,928.21 points last Friday.

"The index is not likely to climb too high after having hit a 12-month high on Thursday," said Yi Xiaobin, an analyst at Galaxy Securities.

"The ample capital in the market has been supporting the rise of most heavyweights and financial shares and investors are very likely to take profit this week. The index may likely stay between 2,800 and 3,050 points," he added.

Guilin Sanjin Pharmaceutical Co became the first company approved by the China Securities Regulatory Commission to launch an initial public offering after a nine-month break on new share sales.

The drug maker said it would launch an IPO today to raise US$88 million.

"Pharmaceutical companies and home appliance retailers did not perform well in the first half of the year, and they may do better in the future," Qian Xiangjin, an analyst at China CITIC Securities, wrote in a report.

"Investors should pay attention to brokerages, which are expected to benefit from the relaunch of IPOs after a long period of suspension," he added.