INVESTMENT DAILY

类型：投资策略机构：凯基证券有限公司研究员：凯基证券研究所日期：2014-10-30

The Hang Seng Index is expected to trade at 23,600 to 24,000today

    Hong Kong market maintained strong momentum on Wednesday. HSI openedhigher by 183 points and extended gains then, it close at 23,820, up 300 points.

    HSCEI surged 175 points to close at 10,724 boosted by strong 3Q results of Chinafinance stocks. Market turnover rose to HK$79.6bn. China Mobile (941 HK) furtherincreased 2.79%. Although 3Q GDP growth slowed, China Telecom (728 HK),Sinopharm (1099 HK), China Png An (2318 HK), Haitong Securities (6837 HK)reported upbeat 3Q results. Recent correction of Hong Kong market createdinvestment opportunities.

    US stock market was volatile on Wednesday. The Federal Reserve made official itsplans to end the last round of quantitative easing program, as expected. Besides,although the Fed said it would keep fed funds rate at zero for a considerable period, itwould offset by the Fed’s upbeat view on the labour market and inflation. US stockmarket stopped its recent upward trend, but finished the days off from its low. TheDow and the Nasdaq closed 31 points (to 16,974) and 15 points (to 4,549) lowerrespectively.

    China government ease its monetary policy as well as launched measures likepromote free trade zone, together with faded effect from delay of HK ShanghaiConnect, HK stock market persisted its rebound. On the other hand, the Fedannouncement is in line with market expectation, which might not have too majorimpact on Hong Kong stock market.

    Technical Analysis

    Hang Seng Index gap opened higher and closed with white candle on Wednesday,Technically, index saw resistance at 100DMA (23,899), couple with the MACDbullish gap narrowed, showing that momentum turning weak. Hang Seng index firstsupport would be 20DMA (23,228), while next support would be at seen at 23,000.

    For resistance, 100DMA (23,899) would become the first resistance, while nextresistance would be seen at 24,000.