Date: 14-Nov-2008
 
IndexChg (%)Ch (pt)Closed Yesterday Chg (%)
H.SI           +2.43%+321.3113542.66-5.15%
HSCEI+3.33%+226.067021.64-4.75%
HSCCI+3.51%98.002891.79-4.61%

 
HK$ BlnHKM TOH.SI TOWarrant TOHSF TOHSP TO
Today44.74bln19.43blnCall6.44/Put4.71bln9.86bln1.16bln
Last51.79bln24.24blnCall8.27/Put4.34bln12.45bln1.57bln

 
Market sentiment:
A Rally day as expected, turnover was very thin – Only HK$ 44.7bln. Market seems to lack of buy interest. Long funds were quiet, and Hedgers start to short selling property, banks, HKEX. China A-share rallied from morning due to IR Cut rumor, which happened every Friday. I called it Friday phenomenon.
 
Top 10 deals at CICC (by turnover in HK$).
6 Buys vs. 4 Sells (1 Short Sell): Buy 1398.hk, 3968.hk, 857.hk, 323.hk, 1088.hk, Sell 2777.hk, 1088.hk, 2332.hk, Short Sell 1398.hk.
 
Market sector Movement      
 
SectorPerformance SectorPerformance
Telecom MixedOil relatedGood
Electric PowerGoodEnergy Resource Mixed
Metal OKShipping OK
FinanceGoodAir TransportMixed
Property MixedAutomobile Mixed.

 
Hong Kong market opened around 500pts higher in the morning and continued to test lower support level over the day. Index gained 321pts to close at 13542pts or 2.43%. Turnover was HK$44.7bln only. China A-share gained 3.05% to close at day high as IR cut speculation. H-share +3.33%; Red-chip +3.51%. In Hong Kong, CMHK 941.hk, China Life (2628.hk) and HSBC (5.hk) led the index up.
l  HK has been in a technical recession, with real GDP contracting by 0.5% QoQ in 3Q and 1.4% in 2Q. Real GDP grew disappointingly by just 1.7% YoY in Q3 (4.2% in 2Q & 7.3% in 1Q), significantly below the 2.6% Bloomberg median forecast. Going forward, CICC expect the HK economy will contract by around 1% in 2009, the worst since the Asian financial crisis.
 
l  Due to the expectation of IR cut over weekend, Banks retreated part of their gain in the morning, but still recorded positive performances at the day end. ICBC (1398.hk) +1.9%; Citic Bank (998.hk) +1.0%; CCB (939.hk) +2.22%; CMB (3968.hk) +3.9%. BoComm (3328.hk) +3.2%.
 
l  BDIY rebounded to 823pts. COSCO (1919.hk) gained 13.5% to close at day high HK$4.81 as it is said to be considered to add into Hang Seng Index. CSCL (2866.hk) closed flat, Cosco Pacific (1199.hk) -0.4%; Pacific Basin (2343.hk) +6%.
 
l  Huaneng Power (902.HK) +11.8%, Huadian Power (1071.HK) +13% and Datang Power (991.HK) +10.9% as they may possible benefit by electricity prices hike in China. China NDRC said in today press briefing that it is the time for China to reform its energy price mechanism. Yesterday Huaneng Power also said they believed govt. would increase electricity tariff by the end of 2008.
 
l  Mainland media said Beijing may reduce oil-product prices as crude oil prices fall. Sinopec (386.hk) +2.5% eported it would slash crude processing by 10% in Nov from July's record as the nation's economic slowdown cuts fuel demand.; PetroChina (857.HK) +4.1% and CNOOC(883.HK) +4.4% today.
 
l  China's gold association suggested that China should increase its bullion holding to diversify its reserves because the USD may decline. Zijin Mining(2899.HK) once gained +8.7% and Zhaojin Mining(1818.HK) +5.0%.
 
l  Bosideng (3998.HK) has denied the report from Ming Pao news and rose as much as 6% in early morning but closed with +1.3% gain. .