InvestIdeas

From Dr. Check:-

It has to be said local Hong Kong banks are relatively healthier than their global peers. Even though they may have invested in toxic assets, the ratio is small, and more importantly, most of such exposures have been written off.

Dah Sing Bank (2356) is a good example. It is yet another local lender that may be an acquisition target of mainland banks.

Dah Sing Financial Holdings (0440) is the biggest shareholder, owning a 74.96 percent stake. The family of Wong Shou- yeh, the bank's chairman, holds 38 percent of Dah Sing Financial Holdings, Relatively speaking, the shares are liquid.

Dah Sing Bank's current market capitalization is only HK$3.89 billion. It is trading at around 0.42 times its book value. As such it can be considered very reasonable. Gradual accumulation for the long-term gains looks like a viable option.

Dah Sing Banking Group ST: the RSI is oversold <2356.HK>


11.3 is our pivot point.

Our preference: the downside prevails as long as 11.3 is resistance.

Alternative scenario: above 11.3, look for 11.6 and 11.8.

Comment: the RSI is below 30. It could either mean that the stock is in a lasting downtrend or just oversold and therefore bound to retrace (look
for bullish divergence in this case). The MACD is below its signal line and negative. The configuration is negative.

Moreover, the stock is trading under both its 20 and 50 day MA (standing respectively at 11.68 and 12.14). Finally, Dah Sing Banking Group has penetrated its lower daily Bollinger band (11.01).

Supports and resistances:
11.6 *
11.3 **
11.2
10.98 last
10.5
10.4 **
10.2*