INVESTMENT DAILY

The Hang Seng Index is expected to trade at 24,000 to 24,300today

    Hong Kong stocks opened 108 points higher, gains were enlarged after HSBCannounced July PMI was 52, Hang Seng index closed 169 points higher to 24,141.

    H-share index gained 118 points to 10,939. Market turnover was HK$86mn. Chinesefinancial plays performed strong, mainland insurers increased 2% to 4%. Forindividual stock, Huadian (1071) plunged 6.8% after announced share placement.

    Given mixed corporate quarter results as well as economic data, US stock markettraded within a narrow range and closed mixed on Thursday. S&P 500 continued toclose at market high while the Dow lost 3 points (to 17,084). Although Facebook hitnew high given its strong earnings, the Nasdaq also dropped 2 points (to 4,472). Onthe other hand, since weekly first-time claims for unemployment benefits fell to amore than 8-year low, bond price declined with 10 Year US Treasury Yield added 4basis point to 2.51%.

    Since HSBC China PMI rose to 52, which is above expectation, it reflected thatrecent government measures has imposed positive impact toward the economy. Itprovides support to HK stock market. Technically speaking, Hang Seng Index initialsupport is at 24,500.

    Technical Analysis

    Hang Seng Index closed with hammer on Thursday. Technically, Hang Seng indexbroke through resistance of 24,000 and saw the year high, couple with MACDsbullish gap expanded, showing momentum turning stronger. Hang Seng index firstsupport would be 10DMA (23,582), while next support would be seen at 50DMA(23,205). For resistance, if calculating by the broke through of head & shouldersbottom, 24,500 become first resistance, while next resistance would be seen at25,000.