Broker Daily Commentary - 2001-09-04 10:22
Following the worse-than-expected GDP growth figure announced last Friday, the HSI dropped 1.7% to close below its psychological support level of 11,000. The mainland telcos were hit hardest due to rumors of adopting caller-party-pays system in October. The most heavily traded issue, China Mobile (0941) lost 7.2% to $22.55 on a turnover of $728 million. While ahead of its interim profit announcement on coming Thursday, PCCW (0008) continued to be battered by panicking investors, went down to its 52-week low at $1.62. Turnover was further reduced to a thin level of $4.9 billion.
B-share markets closed mixed yesterday. Shanghai B-share Index slipped 0.27%, compared with a 0.51% rise in Shenzhen. Depressed by the dropping in A-share markets, B-share markets remained weak. Though the transaction rules of T+1 will benefit the unification of A and B shares in long term, the markets still need time to accept it. Due to the sluggish turnovers and no other positive news, the
markets will remain weak in the coming days.
The US stock market was closed due to the Labor Day holiday. For the European markets, the FTSE and DAX fell 0.6% and 1.7% respectively due to weakness from TMT counters like SAP, Vodafone and Deutsche Telekom. For the local market, the new housing policy is expected to lift the property counters in the immediate term. Hence, we expect the HSI to stabilize and trade at 10,800-11,000 today.
(Source from KGI)
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