INVESTMENT DAILY

The Hang Seng Index is expected to trade at 24,700 to 25,100today

    Eased tension at both Ukraine and Iraq, as well as A share market resumed itsuptrend, Hang Seng Index opened higher on Friday and moved gradually upward,once overcome 25,000. The Hang Seng Index closed 154 points higher at 24,955, Hshare index also moved up 29 points to 11,104. Market turnover was HK$69.1bn.

    China Mobile (0941.HK) beat expectation, its share price rose 5.8%. Besides,Lenovo(0992.HK) share price added 2.7% as it also delivered a satisfactory result.

    US economic data released last Friday turned weak, especially consumer sentimentdropped to a 9 month low in August. Besides, a Ukrainian spokesperson said forcesdestroyed part of the Russian military unit on Ukrainian soil, profit taking pressureseen on US stock market last Friday with the Dow closing 51 points lower (at 16,663)but the Nasdaq still rose 12 points (to 4,465). Besides, funds flow into bond marketwith 10 year US Treasury yield dropped by 6 basis point to 2.34%. Looking ahead,investors this week focus will be on Jackson Hole Central Banker meeting.

    Given less concern on US interest rate hike, together with strong A shareperformance, HK stock market also resumed its momentum and challenged the25,000 level. Besides, heavyweight mainland financial plays will release its interimresult, which will be market focus.

    Technical Analysis

    Hang Seng Index closed with gyro on last Friday, Technically, Hang Seng indexbroke through 25,000, couple with MACDs appeared bullish gap, showing thatmomentum was weak. Hang Seng index first support would be 10DMA (24,653),while next support would be 20DMA (24,456). For resistance, 25,300 become firstresistance, while next resistance would be seen at 25,500.