Renewed Support Predicted For China Stock Market

The China stock market on Thursday snapped four-day winning streak in which it had risen more than 60 points or 2.1 percent. The Shanghai Composite Index now rests just above the 2,900-point plateau although it may bounce higher again on Friday.

The global forecast for the Asian markets suggests mild upside, mostly on bargain hunting among the oversold regional bourses. The European and U.S. markets were slightly higher and the Asian markets are tipped to follow that lead.

The SCI finished modestly lower on Thursday as losses from the properties and insurance companies were offset by gains from the financial shares and oil companies.

For the day, the index was down 8.89 points or 0.31 percent to finish at 2,905.81 after trading between 2,881.38 and 2,907.85. The Shenzhen Composite Index fell 9.63 points or 0.62 percent to end at 1,532.03.

Among the actives, Industrial and Commercial Bank of China collected 0.35 percent, while Bank of China climbed 1.30 percent, China Merchants Bank rose 0.15 percent, China Construction Bank added 0.43 percent, China Life Insurance tumbled 2.15 percent, Ping An Insurance sank 0.86 percent, PetroChina gained 0.56 percent, China Petroleum and Chemical (Sinopec) jumped 1.11 percent, China Shenhua Energy advanced 0.97 percent, Gemdale skidded 1.04 percent, Poly Developments fell 0.49 percent, China Vanke dropped 0.88 percent and CITIC Securities retreated 1,65 percent.

The lead from Wall Street is cautiously optimistic as stocks fluctuated on Thursday, with the major averages bouncing back and forth across the unchanged line before ending in the green.

The Dow added 43.47 points or 0.17 percent to finish at 25,169.88, while the NASDAQ gained 20.41 points or 0.27 percent to 7,567.72 and the S&P rose 5.85 points or 0.21 percent to 2,788.87.

The early strength on Wall Street reflected bargain hunting following recent weakness, with the Dow

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