INVESTMENT DAILY

The Hang Seng Index is expected to trade at 22,500 to 22,900today

    Hong Kong stocks opened 91 points lower on Tuesday, losses were expanded afterHSBC announced the final value of PMI was 50.2 in September, market fell 296points to 22,932. H-share index dropped 128 points to 10,310. Market turnover wasHK$ 84.7bn. China approve the iPhone6, however, telecom plays remained soft,with China Unicom (762.HK) fell 2.8%, while China Mobile (941.HK) dropped 3%.

    Coal plays rebounded, with supported policies.

    US stocks Recovered Most of its LossEurope Central Bank offered details of a new asset purchase program intended toboost the lagging European economy, however, it is in line with market expectationand fail to impress investors. US stock market continued to fall on early Thursday.

    However, as US market has already dropped sharply on Wednesday, some bargainhunting interest emerged, US market recovered most of its loss. The Dow closed 4points lower only (at 16,801) while the Nasdaq rose 8 points (to 4,430).

    Weakness in emerging market stock and currency, together with Occupy Central,HK stock market and currency also turned weak. The Hang Seng Index fell below250 Day SMA. Next support will be seen at 22,500.

    Technical Analysis

    Hang Seng Index gap opened lower and closed with hammer on Tuesday,Technically, index dropped below 23,000, coupled with the MACD bearish gapfurther expanded, showing that momentum was weak. Hang Seng index first supportwould be 22,500, while next support would be seen at 22,000. For resistance,250DMA (23,172) become the first resistance, while next resistance would be seenat 100DMA (23,817).