Yesterday, the Hong Kong market crashed sharply for the second consecutive day. Five American and European central banks pumped liquidity into the market to ease the liquidity crisis. Investors were not convinced that the credit crisis was over.
Asian markets fell across the board. The Hong Kong market opened down 300 points and the loss accelerated in the afternoon session. The Hang Seng index lost as much as 915 points but narrowed to 776 points at the close. Shipping stocks fell sharply causing the H share index to lose 630 points. Over night, European markets fell in line with Asian markets.
Dow Jones rose for a second consecutive day on corporate news. Dow Jones gained 44 points. This morning, Nikkei rose 66 points.
The market lost 1481 points in two days, and is now oversold. We expect a technical rebound today. Bargain hunting will also lift the market. The Hang Seng index will rise to 28000 level.
New World Department Store (0825) The stock is a stand-out amid a declining market. Investors are hopeful of asset injection from the parent company. Domestic demand is the play in the market now.
Buy $10.70 Target $15.00 , Cut loss $9.00
R & F Properties (02777) Share price fell sharply recently due to economic austerity measures on the Mainland. Yet, the Group's 2007 profit will more than double. Sun Hung Kai Properties are joining forces with R & F to development a large site in Guangzhou. The share price is low and now is the time for bargain hunting.
Buy $27.30 Target $35.00 Cut loss $25.00
Lun Sheung Nim and his associates do not own the above-mentioned shares.
Fulbright Securities Limited
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