Investment Daily

Ahead of the Christmas holiday, Hong Kong equities stayed weak on Friday, theHang Seng Index once dropped nearly 150 points. The Index decreased 61 pointsto close at 21,574 points. HSCEI closed at 9,181 oints, dropping 61oints. Turnoverfor the whole day as low as $50.4 billion. Some brokerages concerned about thegrowth of VIP business of Macau, dragging the performance of the gamblingstocks. Also, the automotive sector decreased in general, related stocks lost 1% to2%.

    Thanks to US property price rose and US consumer confidence rose to highestlevel since 2001, US stock market continued its rally on Tuesday. Hightechnology stock performed well on the day. The Dow and the Nasdaq rose 11points (to 19,945) and 25 points (to 5,487) respectively. On the other hand, aheadof the oil production volume cut, oil price rose 1.6%.

    Amid the A share weakness, HK stock fell below 22,000, and continued itsweakness. Looking ahead, as HK stock market has only 3 trading days this week,we expect local market turnover remained thin. Investors focus will concentrate onwhether Hang Seng Index could stay above 250 Day SMA.