HK - Market Direction 01 (Jan 12 - Jul 15)

[winston]

TOL:-

US down only 0.6%

Europe down only 1-2%

Yet Korea is down 3.1% and HK at one stage was down 656 points.

Go figure. I smell some manipulation so I have decided to buy some Bull Calls at leverage of 17x.

Let's see whether they would be covering by 4pm today.

[helios]

Had coffee with someone from HK this morning ; the first thing he said (in excitement) was HK market clash ... cheeze ... why?

[kennynah]

"clash"?

[winston]

DJ MARKET TALK: KE Finds A Dozen Potential HK M&A Targets

0832 [Dow Jones] Kim Eng says with cheap capital flooding the market and major equity markets trading at recent lows, corporates are capitalizing on low funding costs to buy deep value assets.

It sees a rise in takeover activity in the region; notably in Hong Kong, "we saw 16 M&A deals last year and thus far, nine M&A deals and five other deals involving significant asset or stake sales have already been announced year to date."

KE identifies three types potential M&A targets:
1. stocks trading near or below their book values but that have strong cashflows;
2. stocks whose major shareholders want to exit the business;
3. companies that are leading players in strategic industries in China/HK which would provide potential buyers with an immediate market presence.

It identifies 12 potential M&A candidates: Citic Telecom (1883.HK), Cosmo Machinery (0118.HK), EnerChina (0622.HK), Wing On (0289.HK), Cheng Hsong (0057.HK), Huiyuan Juice (1886.HK), China Dongxiang (3818.HK), China Oil & Gas (0603.HK), Chong Hing Bank (1111.HK), Dah Sing Bank (2356.HK), Wing Hang Bank (0302.HK) and SHK & Co. (0086.HK).


Source: Dow Jones Newswire

[winston]

On CNBC:-

Ray Barros expects Support at 18,000. If not, it will drop to 16,000.

[winston]

The HSI fell below the crucial support level of 18,300, closing yesterday at 18,185.

Technically, it should fall back to test last October's low of 16,170.

Let's sit tight.


Source: Dr Check, The Standard HK

[winston]

DJ MARKET TALK: CS Tips 5 HK/China Stocks Positioned For Rebound

1438 [Dow Jones] Credit Suisse says before last month's 10% fall, the MSCI Asia Ex-Japan Index has fallen 16 times by more than 10% in a month since 1995; it looked at what had worked in the next quarter on the 16 occasions, and observed that "stocks trading at good value and relatively cheaper to market valuations are the ones investors pick up first on the signs of a rally."

The house combines the top three performing factors (traditional value, relative value and earnings momentum) and creates a Top Five list for every country in the region based on cumulative scores.

For China/Hong Kong, these five stocks are Wheelock (0020.HK), MGM China (2282.HK), Swire Pacific (0019.HK), China Overseas Land (0688.HK) and SJM Holdings (0880.HK).


Source: Dow Jones Newswire

[winston]

The HSI fell below the crucial support level of 18,300, closing yesterday at 18,185.

Technically, it should fall back to test last October's low of 16,170.

Let's sit tight.

Source: Dr Check, The Standard HK

The above was written by Dr. Check on Jun 5, 2012.

After two weeks, we are now at 19,400.

This Dr. Check at The Standard HK looks like a good contrarian indicator together with George Soros.

When u see them being really afraid, that's not a bad time to go shopping...

[winston]

"I don't think money has left Hong Kong. Investors have been sitting on cash," said Peter So, CCB International Securities' Hong Kong-based co-head of research.

"We are more confident on China, given the uncertainty elsewhere in the world.

We favour Chinese developers, insurance, brokerages and consumer staples, but would probably avoid shippers and exporters," he added.


Source: Reuters

[winston]

Shanghai is closed but HK is open for trading today