Anhui Conch Cement (600585.SH) continued to roll this week, jumping the 10% daily limit on Thursday after the central bank announced heavy interest rate cuts. Two weeks ago, Conch posted a 30% gain when details of the government’s stimulus package were announced. We’ll monitor for new details of the package with fingers crossed for more infrastructure spending. Conch’s big Thursday was enough to push it up 5% for the week. We’re of course pleased with major one-day gains, but frankly, we’ve seen so much erratic behavior from Conch over the months, we’ll likely just continue to watch with cautious optimism.
Industrial and Commercial Bank of China (ICBC, 601398.SH) also shot up on Thursday, but it didn’t stick. Shares in the bank dipped 6% this week, with losses mainly coming later in the week. On paper, ICBC’s week looks a lot like the SCI’s, which closed down 2.44% on Friday to finish the week at 1,871.16.
Neither signs of a slowdown nor new government intervention measures are likely to stop anytime soon. With such uncertainty in the air, we’ll stay on the sidelines a little longer.