China’s key stock index closed up 0.71 percent on Friday, rebounding from a slight loss earlier in the day as investors bought into small-cap companies.
The Shanghai Composite Index ended the day at 3,067.750 points, its highest close since March 9 and gaining 1.8 percent for the week, although it has largely held within a narrow 2,900 to 3,100 range for nearly two months.
The index is not likely to move much in the coming week. Today’s rise is likely to be a technical rebound as there is no big change in the market, said Ren Chengde, analyst at Galaxy Securities.
Ren said investors continued to focus on trading small caps because of a lack of funds flowing into the market.
The market is still alert to tightening liquidity, he said.
Analysts expect the main index to continue range-bound trading in the short term, with immediate support seen at the 250-day moving average, now at 2,944 points, and resistance at the 125-day average at 3,096 points.
Gaining Shanghai stocks outnumbered losers by 694 to 174, while turnover fell to 103 billion yuan ($15.09 billion) from Thursday’s 108 billion yuan. ($1=6.826 Yuan)