News Column

China Stock Market May Extend Friday's Gains

July 13, 2014

BEIJING (dpa-AFX) - The China stock market on Friday wrote a finish to the two-day losing streak in which it had retreated more than 25 points or 1.3 percent. The Shanghai Composite Index settled just above the 2,045-point plateau, and the market may see further upside on Monday.

The global forecast for the Asian markets is cautiously optimistic, although the upside is likely to be limited by apprehension ahead of earnings news this week. The European and U.S. markets were slightly higher on Friday, and the Asian bourses figure to open in similar fashion today.

The SCI finished modestly higher on Friday, nudged into the green by support from the gold miners and the automobile producers.

For the day, the index advanced 8.62 points or 0.42 percent to finish at 2,046.96 after trading between 2,033.00 and 2,051.74 on turnover of 86.3 billion yuan. The Shenzhen Component Index climbed 47.35 points or 0.66 percent to finish at 7,206.97 on turnover of 121.25 billion yuan.

Among the actives, Zhongjin Gold climbed 1.2 percent, while Shandong Gold Mining jumped 1.5 percent and Anhui Jianghuai Automobile surged by the 10 percent daily limit.

The lead from Wall Street suggests mild upside as stocks managed to end Friday's trade mostly higher, extending the recovery from the sell-off seen in early trading on Thursday.

The Dow rose 28.74 points or 0.2 percent to 16,943.81, while the NASDAQ climbed 19.29 points or 0.4 percent to 4,415.49 and the S&P 500 edged up 2.89 points or 0.2 percent to 1,967.57. For the week, the NASDAQ tumbled 1.6 percent, while the Dow and the S&P 500 dropped 0.7 percent and 0.9 percent, respectively.

The strength at the close of trading may have reflected bargain hunting following the notable pullback earlier this week. But traders largely seemed reluctant to make any significant moves ahead of the release of a slew of earnings news this week.

Citigroup (C), Goldman Sachs (GS), JP Morgan (JPM), Intel (INTC), Bank of America (BAC), IBM (IBM), Morgan Stanley (MS), and General Electric (GE) are among the big-name companies due to report their quarterly results this week.

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Source: dpa-AFX International Compact

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