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◆ ‘Unlimited Bond-Buying Programme’ reverse market downtrend
◆ Heavily-shorted stocks recover
“Investors should
prepare bullets for
the next big move”
By Joseph Lau
MARKET RECAP
Attribute to the weakness of
Mainland A-share market,
Hong Kong equity market kept
diving for the current two
weeks. Hang Seng Index break
20000 points on the downside
but start finding support on
19000 level. The majority of the
top constituents loser came
f rom ind iv idua l s tock .
CHALCO(02600) losed over
10% due to poor earnings.
CITIC Pacific (00267) showed
huge selling pressure and no
sign of rebound due to under-
weighting of former major
shareholder.
Although the major index
showed an downtrend during
most of the time, market is
again stimulated by the news
from Europe. The ‘Unlimited
Bond-buying programme’ is an-
nounced at the end of the week,
immediately booted the US and
Europe stock market, causing a
big gain of HK market in a sin-
gle day.
What’s now?
Our market timing model
for both HSI and HSCEI shows
a ‘NEUTRAL’ signal. Investors
should keep searching strong
industry group and individual
stocks. An uptrend of market
might be confirmed within this
week. Index may surge over 3%
with huge increasing volume in
a single day. Convert weak per-
former into cash. Keep enough
bullets for the next big move.
HSCEI broke new low due to A-share
Heng Sang Index start turning up
4
What is a convertible note?
In finance, a convertible note
(or, if it has a maturity of
greater than 10 years, a con-
vertible debenture) is a type
of bond that the holder can
convert into shares of com-
mon stock in the issuing com-
pany or cash of equal value,
at an agreed-upon price.
Borizon
Market Update
5
Issue 8 Sept 2012
INDUSTRY COMPARE
Hong Kong rental sector
performed far better than other
industries due to the crazy move
of Winsor properties(01036).
The expect of capital injection
from major shareholder thrust
the stock price to new high.
Apart from this special event,
other companies in local prop-
erty sector perform well. Attrib-
uted to rise in property value
and rental income, WHARF
(00004) and Hysan Develop-
ment(00014) is immune from
market downtrend.
This week, the heavily-shorted
individuals can eventually bene-
fited from the good news from
Europe. Yanzhou Coal (01171)
start rebounding due to the
cover of short position. Such
move occur in other popular
short target such as Zoomlion
(01157), CNBM(03323) and
Weichai Power(02338).
What now?
Focus on strong movers and
wait for proper breakout.
Winsor properties (01036) doubled in two days
Yanzhou Coal (01171) slides
REITs— Winners of this week
Strongest 5 industries
1) i-phone related
2) Local property
3) REITS
4) China property
5) Utilities
Weakest 5 industries 1) Marine 2) Resources 3) Charcoal 4) Automobiles 5) Highway
Market Update