Market
review:
China stocks stayed stable as investors taking some profit after two days of
rally.
Research Notes:
SHA climbed about 0.12% with money flowed into Wine Brewing, Non-Ferrous Metal
Mining and Chain Store the most. Inner Mongolia PingZhuang Energy Resources
Co.(000780.sz),a coal miner, rallied to limit-up as its profit for Q3 turned
positive as price of coal rallied for months.
Futures price for coal and coke also made new high since the being listed in
the exchanges in China. DXY climbed toward 99 and CNYUSD made a new low in the
past 6 years for strong expectation for the target around 7 as gov saved ammunition
and referred to a currency basket that showed CNY’s actually appreciated
against a basket of non-USD currencies. In commodity market, coal, manganese
alloy and iron ore rallied to limit-up, as the short squeeze continued for
another day and CSRC failed to curb the overheating of the coal complex. The
overall commodity sector remained strong as Yuan weakened against the USD. The
recent rally of SHA brought some relief to the investment industry, yet
investors should, in our opinion, gradually take some profit out of the
rebound, when the communist conference which ended on 27th when the reform plan
would be published. Yet we still favor the new energy and environment
protection sector as well as the whole energy sector which would benefit from
the winter.
Copyright by FangQuant.com