Shanghai stock market may keep upward trend this week

The Shanghai stock market will keep its upward trend this week, boosted by investors' buying interest in a wider range of sectors, according to market analysts.

The Shanghai Composite Index, which covers both A shares and B shares, edged up 1.9% in the first trading week of 2008 to end at 5,361.57 points, higher than the 60-day moving average of 5,347.

Qian Qimin, an analyst with Shenyin Wanguo Securities said 1.9% was not a big jump but many individual stocks showed great power like Olympics-related, retail and beverage sectors, offering investors a wider range of choices.

Shenyin Wanguo forecasts a range from 5,300 to 5,500 points for the key Shanghai index this week. Meanwhile, Southwest Securities gives a range from 5,300 to 5,400 and Shanghai Securities sees a fluctuation between 5,200 and 5,500. The index may challenge 5,600 this week, according to China Galaxy Securities.

Market insiders said expectations for better corporate earnings and abundant capital available in the market were the pushing powers for the market to rise.

Yang Ming, Shanghai Securities analyst suggests that investors may favor gold, copper and oil producers.