The Shanghai key stock index could reach 3,000 points this week, according to analysts.

The benchmark Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, gained 3.12 percent to 2,865.10 points last week.

"The barometer is expected to reach 3,000 points this week if overseas markets don't receive blows," said Zhou Yu, an analyst with Pacific Securities.

"However, a middle-term rebound is still awaiting substantial positive news, falling fuel prices and recovering US stocks," said Zhou, who expected the index would range between 2,700 and 3,000 points this week.

Last week, President Hu Jintao said at a meeting that the country should make efforts to secure a healthy development in stock and property markets.

Positive policies related to capital expansion, refinance and non-tradable shares, and the comparatively stable economy in domestic and overseas areas will help stimulate the market, said Zhang Li, an analyst with Huatai Securities.

"When investors, especially institutional investors, agreed that the country required a stable and healthy stock market with the approach of the Olympic Games, a strong and long-lasting rebound will happen," Zhang said.

He said that the index would move between 2,800 and 3,000 points this week.

Financial, real estate, steel and Olympics-related stocks are among analysts' prior recommends.

The country's stock exchanges have urged stock houses to offer fair and clear market advice to maintain a stable market.

(Shanghai Daily July 28, 2008)