Wednesday January 9, 3:12 PM
MARKET TALK/HK:
Jan Futures Dn 2.6%; Stop-Loss Selling
sg.biz.yahoo.com
1505 [Dow Jones] HS January futures down 2.6% at 11,417 on robust volume of 19,540 contracts vs. yesterday's 12,129 for entire day. Fimat's head of derivative sales says cash market's fall below 10-day and 20-day moving averages has triggered some stop-loss selling; today's transactions mostly shorts, suggesting bearish outlook for HSI. (STT)
1457 [Dow Jones] TECHNICAL ANALYSIS: Henderson Land (0012) still above long-term downtrend despite temporary pullback this morning, and could have have plenty of support at HK$32 if further adjustment unfolds, says Dow Jones analyst John Wu. Although stock has theoretical rising target at HK$48, share unlikely to hit this because correction seems imminent, as suggested by RSI showing triple divergence. Share down 1.3% at HK$38.1. (JZW)
1454 [Dow Jones] HSI down 2.6% at 11,415 vs. 11,398 midday. China Mobile (0941) and China Unicom (0762) remain downside leaders, and account for 52.6% of HSI's 296-point loss. Private banking salesman blames losses to futures-related activity: "Many traders are using fear of intensifying competition to push down heavyweight CMHK in bid to favor shorts made at 11,800." Salesman expects 50-day moving average of 11,100 should be provide solid near-term support. (STT)
1449 [Dow Jones] Signaling likely absence of big spending measures to assist recession-bound HK economy in upcoming March budget, Financial Secretary Leung tells British Chamber of Commerce lunch that government will "focus on managing expenses" in battling deficit blowout. Forecasts 2001/02 deficit of HK$60 billion vs previously projected HK$3 billion. (EAR)
1440 [Dow Jones] China B shares down for 2nd straight day on announcement yesterday that local brokerages to be banned from doing in-house B share trades, effective Mar. 1. 10% fall in Shanghai Dajiang (Group) Stock Co. B shares after resuming trading in afternoon also hurt sentiment, traders say. Share fall follows company statement it expects big loss in 2001. Shanghai B index down 3.1%, Shenzhen B down 4.5%. (KDM) |
