Steady Start Expected For China Stock Market

dpa-AFX International Compact |

BEIJING (dpa-AFX) - The China stock market has alternated between positive and negative finishes through the six five trading days since the end of the three-day losing streak in which it had surrendered almost 65 points or 3.1 percent. The Shanghai Composite Index closed just above the 2,035-point plateau, and the market figures to remain rangebound on Monday.

The global forecast for the Asian markets suggests mild upside, with bargain hunting expected after upbeat economic data from the United States. The European markets were mixed but little changed and the U.S. bourses were slightly higher, and the Asian markets are tipped to follow suit.

The SCI finished slightly lower on Friday as gains from the airline stocks offset a mixed performance from the industrials.

For the day, the index eased 2.17 points or 0.11 percent to finish at 2,036.51 after trading between 2,025.07 and 2,043.98 on turnover of 76.71 billion yuan. The Shenzhen Component Index collected 20.74 points or 0.28 percent to end at 7,312.62 on turnover of 121.19 billion yuan.

Among the actives, China Eastern Airlines climbed 1.32 percent, while SAIC Motor added 0.13 percent and Wuhan Iron and Steel lost 0.49 percent.

The lead from Wall Street is cautiously optimistic as stocks benefited from a late rally. Uncertainty about whether the markets could build on recent highs led to renewed profit taking in the early going, but sentiment brightened by the afternoon and all the major averages finished in positive territory.

The Dow Jones Industrial Average rose 5.71 points, or less than 0.1 percent, to close at 16,851.84. The NASDAQ advanced 18.88 points, or 0.4 percent, to end at 4,397.93. The S&P 500 added 3.74 points, or 0.2 percent, to finish at 1,960.96. For the week, the Dow and S&P 500 posted a mild retreat, while the NASDAQ finished higher.

The choppy trading for most of the session reflected uncertainty about the near-term outlook for the markets following the recent move to record highs by the Dow and the S&P 500. The temptation to take some money off the table has been countered lately by fear of missing out on further upside.

On the economic front, Thomson Reuters and the University of Michigan reported that its consumer sentiment index for June was upwardly revised to 82.5 from the preliminary reading of 81.2. With the revision, the index beat estimates and topped the final May reading of 81.9.

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