Friday 21 November 2008
DJ MARKET TALK: HSI +4.5% Midday; HK Developers Rebound Sharply
HSI in drastic reversal, +4.5% at 12,851.78 midday vs intraday low of 11,814, underpinned by combination of bargain-hunting in cash market, short-squeezing in futures. “Asian markets are recovering in general despite U.S. stocks, that aids Hong Kong. Also, there’re expectations of more economic stimulus policies from Chinese government during the weekend,” says CASH Asset Management’s Patrick Yiu; adds 12,000 now established as firm short-term floor. Blue chips’ gain led by those sold off most aggressively of late, especially HK property stocks. Henderson Land bounces 16.6% to HK$27.00, Wharf +16.2% at HK$16.22, Hang Lung Properties +13.2% at HK$14.80. Fly in ointment is volume remains low at HK$25.92 billion; 13000 immediate HSI resistance.
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SHANGHAI, Nov 21 (Reuters) - Chinese stocks rebounded into positive territory on Friday after a rise in U.S. stock futures and a rumour that China would soon cut interest rates again boosted Hong Kong’s share market sharply.
The Shanghai Composite Index SSEC, which had ended the morning down 4.28 percent after weak overseas markets fuelled fears of a global recession, was up 0.30 percent at 1,989.676 points in the early afternoon. Trade was active.
While Shanghai was closed for its midday break, Hong Kong’s Hang Seng Index .SSEC jumped 4.5 percent in response to the rate cut rumour. Many analysts believe further Chinese monetary easing is only a matter of time.
Fund managers also noted a rumour that Chinese authorities might soon announce the creation of a 300 billion yuan ($44 billion) fund to support the stock market.
“The index has been lifted by the Hong Kong market and all sorts of positive rumours,” said Zhang Qi, analyst at Haitong Securities.
SHANGHAI, Nov 21 (Reuters) - Chinese stocks rebounded into positive territory on Friday after a rise in U.S. stock futures and a rumour that China would soon cut interest rates again boosted Hong Kong’s share market sharply.
The Shanghai Composite Index SSEC, which had ended the morning down 4.28 percent after weak overseas markets fuelled fears of a global recession, was up 0.30 percent at 1,989.676 points in the early afternoon. Trade was active.
While Shanghai was closed for its midday break, Hong Kong’s Hang Seng Index. SSEC jumped 4.5 percent in response to the rate cut rumour. Many analysts believe further Chinese monetary easing is only a matter of time.
Fund managers also noted a rumour that Chinese authorities might soon announce the creation of a 300 billion yuan ($44 billion) fund to support the stock market.
“The index has been lifted by the Hong Kong market and all sorts of positive rumours,” said Zhang Qi, analyst at Haitong Securities.
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