Investment Daily

The latest official manufacturing PMI dropped below 50, falling behind themarket expectation. In contrast, the reading of Caixin manufacturing PMI pointedto expanding conditions. Hong Kong stocks once increased nearly 370 points onMonday, however, the gains became narrower in the afternoon session. HSI closedat 22,129 points, increasing 237 points. HSCEI closed at 9,129 points, rising 170points. Turnover for the whole day was $63.4 billion. Individual insurancecompanies issued profit alert, however, the sector traded higher in general. Capitalflew into Chinese Bank Sector, the sector advanced around 2% to 3%.

    Japan released its stimulus package on Tuesday but has disappointed the market.

    Besides, latest US economic generally slowed down, also impact marketsentiment. US stock fell on Tuesday, with the Dow once dropped more than 150points. Although the drop was narrowed in late session, the Dow and the Nasdaqclosed 91 points (to 18,314) and 46 points (to 5,138) lower respectively. On theother hand, US dollar turned weak, gold price rose 1% to 1,373 US dollar perounce, but oil price fell 1.4% to 39.5 US dollar per barrel.

    Since local blue chips fell in the US ADR market, we expect local market to openlower today. Besides, a lot of major events will take place this week includingHSBC(0005.HK) interim result on Wed, Bank of England interest rate meeting onThur and US non farm payroll on Fri, it will have certain impact on HK marketperformance.