"Last week, the Hong Kong market rose for the four and half days. The Hang Seng index rose above 29000 points. Then, on Friday afternoon, the market reversed direction and took a dive. Profit taking caused the market to reverse direction. The Hang Seng index lost 716 points. Yet, for the week the Hang Seng index still gained 199 points and H share index gained 440 points. Local banks led the blue chips. Over last Friday night, European markets advanced but American markets were little changed. Dow Jones rose 5 points but Nasdaq lost 2 points. This morning, Nikkei opened down 20 points. Over the weekend, Mainland's Central Bank announced raised the deposit reserve ratio by a full percentage to 14.5%, the highest on record. At the same time, the limit for QFII was raised to US$30 billion. The tightening measure will impact the Hong Kong market negatively. We expect the market to fall this week. 28000 is the support level." Last refresh day: 10-12-2007

Today's Recommendations from Fulbright Securities

Datang Power (0991) The share price rose to record high of $10 before retreating to $6.00. The share price is rising again. Electricity price will be raised next year, and the Group's investment in the coal chemical industry will bear fruit. Share price wil rise.

Buy $7.10 Target $8.00 , Cut loss $6.50

China Life (02628) The increase in quota for QFII will support A share market. The move will benefit China Life, by improving return on stock investment. Share price will rise.

Buy $43.00 Target $50.00 Cut loss $40.00

Lun Sheung Nim and his associates do not own the above-mentioned shares.