INVESTMENT DAILY

The Hang Seng Index is expected to trade at 24,900 to 25,300 today

    Hong Kong market was weak and lack of momentum on Tuesday. HSI seesawedwithin 119 points to close at 25,075, down 92 points. HSCEI gained 9 points to closeat 11,124. Market turnover posted HK$64.5. After interim results announcementperiod, China’s reform concept stocks were still investment focus for 2H14. PetroChina (857 HK) was to release its interim results, the counter rose 2.4% to be thebest performer of blue chips.

    A stronger-than-expected reading on consumer confidence provided support to USstock market on Tuesday. Although there is some profit taking pressure in the latesession, S&P index successfully to finish above 2,000 level. Besides, the Dow andthe Nasdaq also closed 30 points (to 17,107) and 13 points (to 4,571) higherrespectively. On the other hand, gold price once rebounded more than 1% onTuesday after recent weakness, but narrowed its gain to close US$6 higher atUS$1,285 per ounce.

    Since there is new round of IPO offered in A share market, which hurt the A sharepeers. However, as HKD remained strength reflecting fund flow in. Initial supportfor the Hang Seng Index is 25,000.

    Technical Analysis

    Hang Seng Index closed with black candle on Tuesday, Technically, Hang Sengindex closed at above 25,000, however the MACDs bearish gap expanded, showingthat momentum turning weak. Hang Seng index first support would be 20DMA(24,807), while next support would be 24,000. For resistance, year high of 25,243become first resistance, while next resistance would be seen at 25,500.