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| Market Outlook |
Thursday, July 29, 2010: 10:55 |
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Hang Seng Index closed up 0.6% at 21,091 and surpassed the 250-day moving average of 20,987. HSCEI added 0.3%. Market turnover increased to $62.5 billion. Local banks such as BOC Hong Kong (2388), HSBC (5) and Hang Seng Bank (11) surged 3.0%, 2.6% and 1.0% respectively. Local property stocks declined although the land auction results were in line with market expectation. SHK Properties (16), Wharf (4), Hang Lung Properties (101) and New World Development (17) dropped 1.1%-3.1%. Sinopharm (1099), the best performing constituent of the HSCEI, advanced 4.4%. Zijin Mining (2899) saw a technical rebound of 3.0%. Cement manufacturers outperformed at the expense of coal producers. Anhui Conch (914) and CNBM (3323) soared 2.7%-3.4% whilst China Coal (1898), Yanzhou Coal (1171) and China Shenhua (1088) plunged 0.4%-1.3%. Performance of Chinese banks and properties were mixed. We are cautiously optimistic about the stock market in the coming two months. Hang Lung Properties (101, $32.60) 6M Target $30.0 SELL |
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Buy
Sell
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| Previous Market Outlooks |
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This commentary/recommendation is for information only and is not to be construed as investment advice or as an offer to buy or sell securities. While the commentary/recommendation is compiled using sources believed to be reliable, no assurance or guarantee is given regarding its accuracy nor completeness. Neither GCap nor any other Guoco Group companies, (nor any employees or other persons connected with any of them) accepts any responsibility or liability arising from any use of this commentary/recommendation. To the extent permitted under applicable law, the above-mentioned companies or individuals may have used the research materials before publication. However, it is hereby declared that neither GCap nor the writer, at the time of writing, has interest in any of the securities mentioned in this commentary/recommendation. |
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