Monday, 29 September 2008

HSI Commentary

1 comment:

Guanyu said...

Hong Kong stocks may rise 300 to 400 points today following news the US government's rescue plan will be passed, but market watchers said gains will be capped by concerns about weakness in the city's property market. The Hong Kong market may have a "substantial rebound" today because of the US rescue plan, Sun Hung Kai Financial strategist Castor Pang Wai-sun said. For the whole week, the blue-chip index will likely trade in a range between 18,200 and 19,500 points, he said. "The market will be quite volatile," Pang said. If investors are confident the US rescue plan will go through, the Hang Seng Index may end the week around 19,500, according to Pang. However, if any uncertainty about the rescue plan emerges, upside for the HSI will be capped at 18,900, Pang said. Local property plays including Henderson Land Development (0012) and Sun Hung Kai Properties (0016) are still facing consolidation pressure, said First Shanghai Securities strategist Linus Yip Sheung-chi. Hongkong and Shanghai Banking Corp's mortgage-rate hike for new customers shows the credit crunch is having a spill over effect in the Hong Kong market, Yip said. The current situation is not yet severe, but it is likely other banks will raise their interest rates for new mortgages if the interbank lending rate remains above 3 percent, he said. The shares of local small- and medium-sized banks could also be hurt this week, according to Pang.