The Chinese mainland's stock market is likely to fluctuate this week as previous gains in the key index have not been supported by clear economic growth, analysts said.
''There is risk of a downward move as market expectations of a quick economic recovery could not be realized without a rebound in exports,'' Haitong Securities wrote in a research note. ''The local benchmark index is seen to meet resistance around 2,700 points.''
The benchmark Shanghai Composite Index gained an accumulative 4.6 percent last week to finish at 2,753.89 points.
Haitong predicted the barometer to move between 2,550 points and 2,700 points this week.
''There are still many uncertainties that may affect the index, including concerns over industry demands, corporate earnings and the resumption of initial public offerings,'' TX Investment Consulting Co wrote in a research note.
''The barometer is likely to swing as it deals with technical resistance between 2,600 points and 2,900 points,'' TX pointed out.
(Shanghai Daily June 8, 2009)
