To: Elwood P. Dowd who wrote (71217 ) 11/7/1999 9:39:00 PM From: Captain Jack Respond to of 97611
Not looking to start the day/week very strong... By Sai Man, Bridge News Hong Kong--Nov 8--The Hang Seng Index is expected to be weak despite an upbeat US jobs report Friday, after Microsoft was branded a monopolist, raising the specter the US software giant may be broken up, brokers said (Story .21823). US stocks are expected to weaken tonight as indicated by weaker S&P futures, following the NASDAQ's 6th consecutive record high and a 0.6% gain for the Dow Jones industrial average on Friday. (Story .1300) * * * "The Microsoft news has triggered a decline in US futures already. The interest rates environment is quite favorable after the US jobs data, but what with the Tracker Fund pricing to be announced soon, and worries about a US decline, we should see the Hang Seng rise a little at first, but will spend the rest of the day weak," OSK Asia Brokerage research manager Alex Wong. He said he expected profit taking to emerge at 13,800, and said he expected the index to wallow around the 13,600 level today. New Century Securities research manager Allan Shum said he expected the domestic factors to play a strong role too, with investors likely to be sidelined ahead of the pricing of the government's initial public offering for the Tracker Fund. At current estimations, the Hang Seng Index tracking fund is oversubscribed 3 times at HK $30 billion. With pricing tomorrow (Tuesday) no one will push index right now. The Tracker should be priced around 13,500 a three-day average of last 3 days trade including today," Shum said. In late US trade Friday, the 30-year bond was at 101 2/32, up 22/32, to push its yield down to 6.042% from 6.088% late Thursday. US non-farm payrolls rose 310,000 in October, close to the market expectation of an increase of 300,000. Average hourly earnings rose only 0.1%, below the consensus estimate of a 0.3% increase. The jobless rate fell to 4.1% in October, below the consensus for it to be unchanged at 4.2%. End