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Market review: June 30, 2016

Fang submitted 2016-06-30 17:09:08

Market review:

China stocks generally stayed unmoved, with SHA declined 0.07%, as some investors taking profit.

Research Notes:

Money flowed into Petrochemical, Porcelain and Power Generation sectors the most. Ningbo Dynamics Co.(002164.sz), rallied to limit-up after it resumed trading with a successful acquisition of a supply-chain company.

CNYUSD stayed in the weak region as investors concerned about weak PMIs to be release on Friday. Commodities are still in the bull-run, led by glass and sugar futures, as more adverse weather may cause damage in South China. As the bull run for SHA had continue for one week and more investors would like to unload some shares, we suggest investors to play with more cautious and reduce some risk exposure given that China PMIs in June could place some pressure on those cyclical shares. Some agri commodities also face risk from acreage report due June 30, a draw back in price of grains are getting more likely.


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