INVESTMENT DAILY

The Hang Seng Index is expected to trade at 24,700 to 25,000today

    Hong Kong market was weak in the morning weighed by the decline of China newloans in July, while it rebounded in the afternoon as PBOC reiterated that guidemonetary policy unchanged. HSI advanced 201 points to close at 24,890. HSCEIalso rallied 130 points to close at 11,194. Market turnover increased to HK474.5bn.

    F&B sector improved broadly, Tingyi (322 HK) added 3.4% to be the best performerof bluechips.

    Despite softer-than-expected retail sales data as well as disappointing quarterlyresults from retailers, US stock market rebounded on Wednesday as there is a reliefsign on tension between Ukraine and Russia. Led by advances in the health-care andtechnology sectors, the Dow and the Nasdaq closed 91 points (to 16,652) and 45points (to 4,434) higher respectively. Besides, the weak retail sales data also easedinvestors concern on US interest rate hike, 10 Year US Treasury yield dropped 3basis point to 2.41%.

    China new bank loans dropped sharply in July while most other mainland Julyeconomic data released on Wednesday were below expectation, but investors believethat it would push the government to release more measures to support economy.

    Major resistance for Hang Seng Index is 25,000.

    Technical Analysis

    Hang Seng Index closed with hammer on Wedensday. Technically, Hang Seng indexclosed at above 10DAM (24,607), couple with MACDs bearish gap narrowed,showing that momentum turning stable. Hang Seng index first support would be10DMA (24,607), while next support would be 20DMA (24,317). For resistance,25,000 become first resistance, while next resistance would be seen at 25,500.