INVESTMENT DAILY

The Hang Seng Index is expected to trade at 24,100 to 24,500today.

    Hong Kong market was weak on Monday. HSI opened lower by 13 points andextended loss then. China released that manufacturing PMI retreated to 50 whichmissed market expected and weighed market sentiment. HSI once dropped morethan 400 points and recovered some loss to close at 24,411, down 225. HSCEItumbled 122 points to close at 11,010. Market turnover reported HK$79.5bn. HSBC(5 HK) mid term results beats, the counter rose 1.9% to be the best performer ofbluechips.

    The latest US economic data including US manufacturing activities as well asconsumer spending are both below market expectation. Together with China latestPMI dropped to two year low, investors concerned on economic outlook, US stockmarket continued its weakness on Monday. The Dow and the Nasdaq closed 92points (to 17,598) and 13 points (to 5,115) lower respectively. Besides, concerns ofIran to substantially increase its supply, oil price plunged 4% to US$45.3 per barrel.

    Owing to anticipated US interest rate hike, US dollar index rose to high level,investors switched its funds away from high risk asset. Given unfavor fund flowtoward EM market as well as weak A share market, we suggest investors to becautious. Major support will be seen at 24,000.