Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : HONG KONG -- Ignore unavailable to you. Want to Upgrade?

To: Tom who wrote (1051)	1/9/1998 8:08:00 AM
From: ----------	Read Replies (1) \| Respond to of 2951

TOM & All.... Copy of morning report notes, 1/9/98, 7:00AM CST. **************************************************************************** * Disclaimer: Although we exercise meticulous effort to ensure accuracy * * of the reports, we are not responsible for any loss or damage resulting * * from errors of the information source or failure of software or hardware * * of the host or client computers, and use of the information. * **************************************************************************** HONG KONG STOCKS - Summary Report 1998-01-09 Deeply scarred by the SE Asian Currencies: Index closed 8,894 (-360) The Thursday US market opened low and quickly dropped for 80 points. The market then struggled along the 7800 support and finally closed at 7802 (-99). The 30-year Treasury was last traded at a yield of 5.741%. The London Reference Index for HK Stock closed at 9,126 (-128). This morning the HK market opened low at 8971 (-283) and quickly dived to the intraday low of 8,721 (-523). Some buyers appeared and the market was pushed back to the 9000 level. The morning market closed at 8945 (-309) with a half day turnover of 6.67 bil. HK$. In the afternoon, continued to struggle along the 9000 edge, and finally closed at 8894 (-360), total turnover was 11.65 bil. HK$. Market News ----------- (1) After market closed, the Bank Association determined to raise the prime rate by 0.75%. (2)There is a general fear that China's currency is under pressure for devaluation to match up with the regional currency crisis, in order to support export. The H shares and red chips were hit hard, both lost close to 25% this year. Market Watch ------------ With the deep plunge in the US market, today the HK market opened low as expected. The interbank loan was also pushed high, with an exceptional high spread. (Normally the borrowing and lending rates differ by 1%, but today the one month borrowing rate was 10% while the lending rate is 15%.) The other SE Asian stock markets like Philippine and Singapore also dropped for around 8%. Apparently this wave of currency attack will probably last till Tuesday next (Jan. 20, 1998) as we suggested yesterday. At the moment when this report was prepared, the London Reference Index for HK Stocks has dropped for another 530 points. Apparently the next support will be at around 8000. Stock Alert ----------- Many blue chips and China H shares are slashed heavily. The selling is irrational and panicky. The daring may make a killing.