Investment Daily

Ahead of the MSCI decision on A-shares, Hong Kong equities traded withinnarrow range on Tuesday. Hang Seng Index decreased 81 points and closed at25,843 points. HSCEI closed at 10,468 points, falling 52 point. Turnover for themorning session was $66.8 billion. The US technology stocks rose, leading theblue-chip technology stock hit historical high and slightly edged higher. Individualauto dealer’s controlling shareholder acquired shares in the market, the sectorclosed mixed.

    US, Libya and Nigeria oil production volume increased in May, triggeredinvestors concern of oversupply in the oil market, oil price fell 2%. Besides, largecap high technology stocks selling pressure re-emerged on Tuesday. US stockmarket performed weak, the Dow and the Nasdaq fell 62 points (to 21,467) and 51points (to 6,188) respectively. Besides, several Fed members said on Tuesday thatit still need to monitor the economy progress on whether to rate hike in second halfof 2017, 10 Year US treasury yield fell 3 basis point to 2.16%.

    Local blue chips fell in the US ADR market. However, after US stock marketclose, MSCI announce to include A share into the emerging market index. Weexpect that it will provide support to HK stock market.