Morning!
To make it brief today, taking leads from the sense of optimism from good data and a positive notes on stress test result, we expect to start off the week, Asia will in general take this cue and have a green start.
Dive2Blue has recommended pharmaceutical to be a top pick for the start of this week, while I personally believe oil stocks, names like Santos (STO.AX), Oil Search (OSH.AX), CNOOC (883.HK) will be decent watch for the start of this week, given that oil has reentered above the $50/bbl mark.
Optimism may come from U.S. bank sector, and we may see a continual run over the banking sectors in Asia Pacific. Diversified financials shall be the names we are looking into. We want to pick names such as Macquarie Group (MQG.AX) and ICBC (1398.HK), but avoid consumer credit-focused names as we expect the consumer credit sector continues to deteriorate.
Consumer discretionary and staples is also anticipated to go up today, but on a slower leg as compared to the market.
Despite the sense of optimism in the market, we maintain to have a bearish overtone over the market. We continue to favour the precious metal trade, and continue to recommend on a buy on Lihir Gold (LGL.AX) and SPDR Gold (2824.HK) with the greenbacks continue to fall, while bearish over industrial metals.
Provided we had Asia had a mixed day on Friday, we may anticipate some technical sell off in HSI, but we expect ASX200 to rally today. We anticipate 1.5- 2% movements for ASX200, while we see HSI to end 0.5% - 1% up.
Thats about it for this morning! Happy trading!
ongy out.
Monday, 27 April 2009
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1 comments:
Though its a bit late, may add a little comment over the mid day sell off move.
I believe this is a typical selloff over news, and investors are taking profit from last week's rally.
Sentiment has changed abruptly, but has hit technical support to gather momentum again.
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