Today's Asian Stock Market From Fulbright Securities

The Hang Seng index gained 725 points rose above 29000 points. H share index rose 310 points. Turnover declined to just under $90 billion. Over night, the Federal Reserve cut interest rate by 1/4% as expected.

Yet, the declaration after the meeting pointed out inflation was still a worry. Investors feared the US might fall into recession. Stock markets declined. Dow Jones lost 295 points.

Yesterday, the State Statistics Bureau announced a 6.9% in the November consumer price index, the highest in eleven years. Interest rate rise in the Mainland is inevitable. We expect the market to consolidate today following yesterday spectacular rise. The Hang Seng index will fall below 29000.

Today's Market Recommendations from Fulbright Securities

China Railway (0390) This is the best performing newly listed stock recently. The share price rose more than 35% above listed price. Investors are hopeful that new railway construction will add to the Group's sales and profit.

Buy $7.80 Target $9.00 , Cut loss $7.00

China Life (02628) The Group is considering buying 20% of China Agricultural Bank. It will involve an investment of up to RMB100 billion. The reward may be huge if the Agricultural Bank is listed and the share performs well.

Buy $43.00 Target $50.00 Cut loss $40.00

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

Fulbright Securities Limited