Shanghai stocks cap 3rd month of gains

Source:Reuters-Global Times Published: 2017/8/31 19:48:39

Shanghai stocks eased on Thursday as investors took a breather after a recent rally, but scored their third straight month of gains thanks to robust corporate earnings that led fund managers to boost their equity exposure.

The blue-chip CSI300 index fell 0.32 percent to 3,822.09 points. The Shanghai Composite Index lost 0.08 percent to 3,360.81 points, but still stands comfortably above the 3,300-point mark - previously a strong resistance.

For the month of August, CSI300 rose 2.30 percent, while the Shanghai index advanced 2.70 percent, notching their fourth and third straight month of gains, respectively.

Chinese fund managers boosted their suggested equity exposure for the next three months as major indexes pierced key resistance and market sentiment picked up on further signs of an expanding economy, a monthly Reuters poll showed.

"There's fundamental support for the Shanghai index to rise further above 3,300 points, but there needs to be adequate consolidation," Gui Haoming, analyst at Shenwan Hongyuan Securities, wrote in his latest market commentary.

More catalysts are needed to push the market higher, he noted.

Investors largely ignored a survey showing growth in China's manufacturing sector unexpectedly accelerated in August, with some analysts questioning whether such a trend is sustainable.

Indeed, interbank rates have been trending higher, reflecting tighter liquidity conditions as banks brace for quarterly regulatory scrutiny at the end of September.

Most sectors fell on Thursday, led by infrastructure and banking plays, which fell 1.1 percent, as investors pocketed gains, judging newly published, strong results from China's biggest lenders have been fully priced in.

Posted in: MARKETS

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