Stocks inch up as caution prevails among investors

Chinese mainland stocks clawed back some of the previous day’s losses on Tuesday, but the benchmark index remained below the psychologically important level of 3,100 points.

The benchmark Shanghai Composite Index inched up 0.16 percent to close at 3,089.71 points, while the Shenzhen Component Index finished the day 0.18 percent higher at 10,750.29 points.

The CSI 300 Index of the biggest companies traded in Shanghai and Shenzhen rose 0.15 percent to 3,341.83 points.

The ChiNext Index, which tracks the country’s NASDAQ- style board for growth enterprises, added 0.31 percent to 2,174.16 points.

A total of 460 billion yuan ($ 69.35 billion) in shares changed hands on the Shanghai and Shenzhen exchanges on Tuesday, down from 534.20 billion yuan on Monday.

Fertilizer, tourism and insurance stocks outperformed their peers.

Mainland equities are going through a period in which there won’t be a great deal of incremental funds entering the market, said analysts from AVIC Securities. Instead, most of the new money going into the market is being used to speculate on investment hot spots.

The analysts warned that stocks remain mired in weakness considering that the indexes have fallen back after the rally in recent weeks. They suggested investors remain on the sidelines, noting that there is no consistent point of view about what the next investment hotspot will be.

The fall of heavily weighted stocks shows investors lack confidence in the market, analysts from Jufeng Investment Information Co said.