INVESTMENT DAILY

The Hang Seng Index is expected to trade at 24,800 to 25,100today

    Hong Kong market was lack of momentum on Wednesday and penetrated thesupport of 25,000. HSI narrow traded in the morning, while it fell into negativeterritory in the afternoon and close near day low at 24,919. Market turnover postedHK$67.6bn. Net profit of Want Want China (151 HK) increased 4%, while grossprofit margin was under pressure, the counter dropped 2.1% to be the worstperformer of blue chips.

    With no major U.S. economic reports or other events, investors focus switch back onindividual company issues. US stock traded within narrow range on Wednesdaywhile Apple is closing at new high helped to lift the market. US stock market closedmixed with the Dow added 15 points (to 17,122) while the Nasdaq edged down 1points (to 4,570). On the other hand, bond market also performed well with 10 yearUS Treasury yield dropped 3 basis point to 2.36%.

    Recent round of IPO started offer which hurt A share market, hence, Hang SengIndex dropped below 10 Day SMA. Although fund flow is still favor HK market,given accumulating significant amount of gain, HK stock market might need toconsolidate. Investors could wait for better entry opportunity.

    Technical Analysis

    Hang Seng Index closed with black candle on Wednesday, Technically, Hang Sengindex closed at below 25,000 and 10DMA (25,026), couple with the MACDs bearishgap expanded, showing that momentum turning weak. Hang Seng index first supportwould be 20DMA (24,816), while next support would be 24,000. For resistance, yearhigh of 25,243 become first resistance, while next resistance would be seen at25,500.