Stocks remain flat; analysts advise caution for rest of year

Mainland stocks on Thursday stayed roughly where they were the previous trading day, and experts advised investors to be cautious in investments through the rest of the year.

The benchmark Shanghai Composite Index fell 0.01 percent to close at 3,084.46 points. The Shenzhen Component Index finished 0.25 percent higher at 10,784.33 points.

The CSI 300 Index of the biggest companies traded in Shanghai and Shenzhen added 0.07 percent to close at 3,318.60 points.

The ChiNext Index, which tracks the country’s NASDAQ- style board for growth enterprises, rose 0.38 percent to close at 2,193.26 points.

About 474.80 billion yuan ($ 70.45 billion) traded on the Shanghai and Shenzhen bourses Thursday, down from 495.30 billion yuan Wednesday.

Sectors diverged. Chemical fiber and software outperformed the market, while alcohol and shipbuilding were among the biggest losers. Expert forecasts were cautious. Analysts from China International Capital Corp said the rise of A- share stocks relies on the progress of reforms and economic improvement. But they noted the uncertainty caused by the still struggling economy, the depreciating yuan and potential corporate default risks.

Analysts from Jufeng Investment Information Co said that A- share markets will still fluctuate, unlikely to break through in the rest of the year. But they also noted that favorable factors, such as rises in the US and European stocks, higher crude oil prices and increased liquidity in Chinese market, may help major A- share stock indexes in the short term.

Analysts from JZ Securities said that the market is in a stalemate, with difficulties going beyond 3,100 mark points. They suggested investors remain cautious and control their exposure. They advised paying attention to stocks related to public- private partnership projects, building materials and high- speed rail.