Thursday, November 6, 2008

The market lost a rebound in the doldrums Zaixian

A-share market Thursday afternoon to maintain the disadvantaged. Steel stocks, brokerage stocks such as Jedi rebound, but banking, petrochemical, coal, and so the decline does not change. SSE Composite Index 1717.72 points, down 2.44 percent; Shenzhengchengzhi 5720.55 points, or 2.48 percent.

Judging from the recent trend to see, A shares fell with no up with the more deep-rooted bad habits, yet to shake off the external constraints and the impact of the stock market. A U.S. stocks yesterday by the continuous rebound in the stock market and the external stimulus has been movement, but much lower than the peripheral or the stock market. U.S. stocks fell Thursday, A shares also opened sharply lower. Investors worried once again return to the economic level, following the pre-game outside the rebound to start the withdrawal of speculative buying, so that A-share market is facing downward pressure again.

Cement shares dropped Chonggao afternoon, despite the increase of national infrastructure to support good, but cement stocks are still up by a heavy sell-off Jiancang disk, but in the quiet cement stocks, shares of steel plate and the plate in the securities trading performance Active, so that the market has maintained a certain activity. Guangzhou Iron and Steel shut shares trading, up 7.72 percent Nanganggufen, the new Steel shares rose 6.34 percent. Steel plate over 80 Piaohong stock, plate or 1.65 percent. Today, there are media reports that damage to the Ministry of Commerce Industry Bureau of Investigation are Shandong, Hebei, and other research to a loss of the steel industry, the final report will be turned over to the relevant departments to form. This is a market expected to show the steel industry "rescue" forewarning. Prior to that, because of factors such as the deterioration of demand, steel prices falling profits, iron and steel stocks losing ground. According to statistics, up to yesterday's close, the two cities, "breaking the net shares" as many as 205, 2005, the Shanghai Composite Index more than the minimum 998 points. Among them, broken into the net shares of steel stocks has been the hardest hit, as many as 27 units of less than 1 Shijing Shuai, the two cities account for two-thirds of the iron and steel stocks.

Rebound momentum of the market constraints will continue to be a lack of room for growth. First of all, the market is still a lack of effective leading hot spot. Valuation Department has the low performance of the financial services sector more actively yesterday, but the prospects for economic uncertainty in the industry determines the valuation does not have the potential to improve, market outlook continues to rebound pressure. Construction and building materials industry in the near future is also very active in the movement, however, a number of leading shares is no longer cheap, and its role in driving the market is also more limited.

Global financial markets, central banks in a timely and decisive intervention has been stabilized for the time being, but it is very difficult to determine the financial markets has been a real ride out the storm, and further, the financial crisis on the real economy is just beginning to drag. "De-leverage" to bring direct economic slowdown and the slowdown in demand in developed countries and emerging economies have to face the challenges of recession. These factors in the global financial markets to stabilize before the pick-up will take some time, I am afraid of the shock.

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