Asia 130509 Afternoon Wrap

Afternoon all,

Some day it was.... with so many wipesaw moves across each market. To wrap up, ASX200 was down 0.54%, while Nikkei up 0.45%. Kospi and TSEC up 0.78% and 0.82% respectively, showing some strengths with the tech sector. HSI had a very wipsaw move, with the market opened lower, but headed up 1.7% in the morning session, however sellers got back into the game in the afternoon, and HSI finished down 0.55%.

As per sector performance today, the properties sector up 2.11%, with Cheung Kong (1) up 2% and Reits are up 2%, while HSCEI was up 0.17%. Again, this notion of financials dragging the market came into the play, though BOC (2388) closed up 1%.

This theme of china slamming breaks on credit seems to continue to drag onthe market, as ICBC, though at one point was higher up on the market, finished down 0.65%. BOC (3988) also went down 1%. CCB (939) down 3.82% given the rights were listed today. However China Merchant Bank (3968) went up 4.5% today.

As expected, the insurance went rather flat, as China Insurance ends flat, and Ping An went down -0.6%.

As I mentioned, i did not want to touch the telcos as China Mobile (941) went into a trading halt, while both Unicom (762) and China Telecom (728) both down 3.27% and 3.39% respectively. From here, I will see China Mobile to have some catch up to do as it resumes trading.

Oil stocks, as mentioned this morning, should have a good day given the oil price shooting to new highs again, this led Sinopec and Cnooc to go up 2% and 5% respectively. Also, this morning's belief in the copper play given the factory investment theme also led Jiangxi Copper (358) up 4%, while Chalco (2600) also up 2%. Moreover, this coal theme should not be left out, as Shenhua Energy (1088) and China Coal Energy (1898) both went up 4% and 2% respectively.

Steel play, as mentioned, also took the lead today, with Angang (347) and Magang (323) both taking leads, up 7% and 5% respectively by midday, though closing down both to 4%. Likewise, this precious metal play took the day high with zijin mining (3899) up 7% at one point, but closing down at 5.41%.

Autos suprised me, as Geely finally admitted eyeing on Saab, taking Geely up 12% at one point, put strength died out, closing up 4%. Given data showing strength in car sales in domestic market, autos in general also did well, with Dongfeng also up 1.84%.

Defensive names were my picks today, as HK & China Gas (3) went up 2.8% by miday, before slipping down to close up 1.69%. CLP (2) took hit, as report came out demonstrating a hit on earnings, ending down 1.54%. Huadian (1081) down 1.54%, HK Electric (6) down 0.59% , China Gas Holdings (384) up 1.29%, Huaneng Power International (902) down 1.57%, Dateng International Power (991) down 0.54%, Towngas China (1083) up 3.52%. Hence, defensive was ok relative to market, though power play was submissive to the gas play, which clearly outperformed the market.

Looking ahead for tomorrow, I remain bearish over the HSI, as I see more downside to both profit taking and concerns over the market has overrun itself. I also remain buyer of defensives and sellers of financials. Will provide more updates tomorrow!

Happy trading!

ongy out.