Morning,
Flows went well last night, as German's came out to speak after Europe market on the possibility to aid Greece's deficit troubles and Greece PM provided new measures to overcome the problem at hands. It calmed markets down, with US seeing a rebound over the matter, whilst Euro shot up 1.4% overnight.
Despite so, we stress on cautious as the whole deal over bail out may be slightly complicated by regulations within EU, whilst implication of a bail out may potentially causes moral hazard for other PIGS region.
Having a day ahead outlook, since HSI regained 19800 after the recent slump, we may be looking at a narrow range market these few days ahead of CNY holidays. Positive flows this morning from US inventory data and Japanese machinery orders may provide support to the market, though market jittery may continue over the Europe region. We may see HSI to range bound between 19500 -20000 in the coming few days ahead of CNY.
Chinese Banks and consumer sector continues to look attractive given recent sell off, whilst export plays also looks attractive on fundamental basis. We remain buy on ICBC, CCB, BOC, Golden Eagle, Lianhua, Gome and Haier. It should also be noted that autos have now corrected from recent highs, and may pose to be good re-entry points on sales outlook.
Thats it for today.
Happy trading!
ongy out.
Wednesday, 10 February 2010
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