SCI closes up for fourth consecutive day

The benchmark Shanghai Composite Index rose 0.17 percent to 2328.28 on Friday, closing higher for a fourth-consecutive day.

Trade volume reached 85.8 billion yuan ($13.8 billion), down from 104.5 billion yuan on Thursday.

The SCI saw a growth of 2.2 percent this week.

The SCI saw its biggest gain of 0.3 percent in two months on Wednesday after HSBC’s preliminary reading of the country’s manufacturing Purchasing Managers' Index climbed to 51.7 in March from 50.4 in February, indicating faster development of the sector, and also suggesting stable economic growth stimulated by stronger market demand and increasing industrial production.

“The big picture is that the manufacturing sector is doing well and industrial output should expand at least by the targeted 10 percent this year,” Credit Agricole SA said in a research note. “Strengthening growth will lead to inflationary pressures, forcing the central bank to tighten liquidity in Q2 and hike lending rates in H2 by 50 basis points.”

UBS Securities said that although several indicators seem to be giving positive signals, investors are cautious, due to their concerns about the economic recovery strength and stability of policies. The brokerage considers sectors including motors, home appliances, medicine and finance most worthy of investment.