EQ Market Pulse

Document Sample
EQ Market Pulse Powered By Docstoc
					                                             EQ Market Pulse
                                                  April 21st, 2010

Market Pulse
Market temporarily treated as a technical rebound and will remain volatile
After 460 points down the day before yesterday, Hong Kong stocks followed the external rebound yesterday. HSI
closed 219 points up, reported 21 624, H-share Index rose 175 up at 12,429 points with a total turnover 62.5 billion. As
the market has fallen below and covered the previous rising gap, coupled with the mainland against overheating
property market, so the market can temporarily treated as a technical rebound. The market will remain volatile as a
vision of raising interest rates by suppressing the inflation in the mainland will lead to stock market’s continued
downward adjustment with a target of 20,905. Investors may see this as an opportunity and re-enter the market.
For industry sectors, mainland bank and property stocks both rebounded yesterday, in which MINSHENG BANK
(1988) and CMB (3968) delivered the best performance up 2.68% and 2.5% each. A sensational weak rebound of
about 1% posted in mainland property stocks under the policy pressure. Resource stocks failed fully bounce yesterday
while coal mining stocks declined against market’s upward, ANGANG STEEL (347) fell 2.35%; MAANSHAN IRON
(323) fell 0.5%. YANZHOU COAL (1171) rose 2.8%; CHINA COAL (1898) rose 2.65%, PETROCHINA (857) rose
1.54%. Tele stocks outperformed the market, CHINA MOBILE (941) 3.28% up; CHINA TELECOME (728) 4% up;
CHINA UNICOM (762) 3.3% up. Auto stocks were also buyout, BRILLIANCE CHI (1114) soared 15%, DONG FENG
(489) rose 2.14%, and GEELY AUTO (175) rose 2.5%. Expo-related stocks had buying support, as CHINA EAST AIR
(670) 3.23% up, CHINA SOUTH AIR (1055) 3.25% up, CHINA TRAVEL HK (308) 1.5% up. Policy stocks speculated,
WUYI PHARMA (1889) soared 11.96%, BROAD INTELL (1149) soared 20.80%

         INDEX                   CLOSE              CHANGE
 DOW INDEX                11117.06      +25.01      +0.22%
 NIKKEI 225               10900.68       -8.09      -0.07%
 TAIEX                     7900.42      +46.20      +0.58%
 SEOUL COMPOSITE          1718.03       +12.73      +0.74%
 SHANGHAI A SHARES        3123.64        -0.91       -0.02%
 SHENZHEN A SHARES        1238.02       +4.09       +0.33%
 FTSE100                  5783.69       +55.78      +0.97%
 DAX                      6264.23      +101.79      +1.65%
 CAC40                    4026.65       +56.18      +1.41%

                                                                                    CHINA COM CONS (1800)

                        Hang Seng Index                                               LENOVO GROUP (992)
                        Source: PROSTICK                                                 Source: ET Net
Short term buy: HARBIN                                                                 Supported by renewal energy policy, stock
                          BUY:     $6.15     TARGET:     $6.80      STOP:   $6.10
POWER (1133)                                                                           price relatively low
Short term buy: GEELY
                          BUY:     $3.53     TARGET:     $4.50      STOP:   $3.20      Policy support, short-term oversold
AUTO (175)
Short term buy: CHINA                                                                  Mainland domestic consumption stock,
                          BUY:     $5.00     TARGET:      $6.00     STOP:   $4.80
DONGXIANG (3818)                                                                       good business performance

1M Portfolio                                 Cross Reference             20726        Previous Close 21623
Status    Equity Name            Buy in Price    Close           Amount             Target    Stop      Reason
Hold      GEELY AUTO             $3.58           $3.70           60,000 Shares      $4.50     $3.20     Short term oversold
Hold      CHINA COMM             $7.13           $7.56           26,000 Shares      $8.00     $6.95     Short term oversold
          CONS (1800)
Hold      LENOVO GROUP           $5.23           $5.65           60,000 Shares      $5.85     $5.00     Speculation on its
          (992)                                                                                         industry
Hold      BANK OF CHINA          $4.08           $4.11           60,000 Shares      $4.48     $3.98     Short term oversold,
          (3988)                                                                                        less influences from
                                                                                                        same industry loan
Portfolio Market Value ->         $1,004,160
Cash Balance ->                   $100,060
Amount Value ->                   $1,104,220 (+10.42%)
Buy 60,000 Shares of BANK OF CHINA (3988) at $4.08

                                             1M Portfolio

                                           Geely Auto
                                                                            Geely Auto(automobile)
          Bank of China
            22.90%                                                          China Comm Cons(Construction)
                                                                            Lenovo Group (Export)
                                             China Comm Cons
                                                  17.36%                    Bank of China (Mainland Banking)
                          Lenovo Group
Tuesday                                                                                         April 20th, 2010
    GMT+8                 Event                                                                                       Actual                Consensus                   Previous
      4:00                USD FOMC Member Duke Speaks
      6:45                NZD CPI q/q                                                                                0.40%                      0.60%                    -0.20%
      6:45                NZD FPI m/m                                                                                0.20%                                               -1.30%
      7:50                JPY Tertiary Industry Activity m/m                                                        -0.20%                     -0.90%                     2.90%
      9:30                AUD Monetary Policy Meeting Minutes
     14:00                EUR German PPI m/m                                                                         0.70%                      0.50%                     0.00%
     16:00                EUR Current Account                                                                         -3.9B                      -5.3B                     -1.7B
     16:30                GBP CPI y/y                                                                                3.40%                      3.20%                     3.00%
     16:30                GBP Core CPI y/y                                                                           4.40%                      2.80%                     2.90%
     16:30                GBP RPI y/y                                                                                3.00%                      4.10%                     3.70%
     17:00                EUR German ZEW Economic Sentiment                                                            53                         45.2                      44.5
     17:00                EUR ZEW Economic Sentiment                                                                   46                         38.9                      37.9
     21:00                CAD BOC Rate Statement
     21:00                CAD Overnight Rate                                                                         0.25%                      0.25%                     0.25%

Wednesday                                                                                           April 21st, 2010
    GMT+8                  Event                                                                                      Actual                 Consensus                  Previous
    0:00                   EUR Buba President Weber Speaks
    8:30                   AUD MI Leading Index m/m                                                                  0.50%                                                0.20%
 21st-29th                 AUD NAB Quarterly Business Confidence                                                                                                             18
   16:30                   GBP Claimant Count Change                                                                                             -5.7K                    -32.3K
   16:30                   GBP MPC Meeting Minutes                                                                                               0-0-9                     0-0-9
   16:30                   GBP Average Earnings Index 3m/y                                                                                      2.50%                     0.90%
   16:30                   GBP Unemployment Rate                                                                                                7.80%                     7.80%
   20:30                   CAD Wholesale Sales m/m                                                                                              1.30%                     3.00%
   22:30                   USD Crude Oil Inventories                                                                                                                       -2.2M

The information contained in this document may be indicative only and has not been independently verified and no guarantee, representation, warranty or undertaking, express or
implied is made as to the fairness, accuracy, completeness or correctness of any information, projections or opinions contained in this document or the basis upon which any such
projections or opinions have been based and no responsibility or liability is accepted in relation to the use of or reliance on any information, projections or opinions whatsoever
contained in this document. Investors must make their own assessment of the relevance, accuracy and adequacy of the information and opinions contained in this document and
make such independent investigations as they may consider necessary or appropriate for the purpose of such assessment. All such information, projections and opinions are
subject to change without notice.
This document has been issued by BWC SECURITIES LIMITED and the information herein is based on sources believed to be reliable and the opinions contained herein are for
reference only and may not necessarily represent the view of BWC SECURITIES LIMITED. The research analyst(s) who prepared this report certifies(y) that the views expressed
herein accurately reflect the research analyst’s(s)’ personal views about the financial instrument or investments and that no part of his/her/their compensation was, is or will be
directly or indirectly related to the specific recommendation(s) or views contained in this research report. Nothing herein shall constitute as offers or solicitation of offers to buy or
sell foreign exchange contracts, securities, financial instruments or other investments. Re-distribution of any part of this document by any means is strictly prohibited.
BWC SECURITIES LIMITED and its affiliates may trade for their own account in, may have underwritten, or may have a position in, all or any of the securities or investments
mentioned in this document. Brokerage or fees may be earned by BWC SECURITIES LIMITED or its affiliates in respect of any business transacted by them in all or any of the
securities or investments referred to in this document.
The investments mentioned in this document may not be suitable for all investors. Investors must make investment decisions based on their own investment objectives, financial
position and particular needs and consult their own professional advisers where necessary. This document is not intended to provide professional advice and should not be relied
upon in that regard. No consideration has been given to the particular investment objectives, financial situation or particular needs of any recipient. Investment involves risk.
Investors should note that value of investments can go down as well as up and past performance is not necessarily indicative of future performance. This document does not
purport to identify all the risks that may be involved in the securities or investments referred to in this document.

                                                                  BWC SECURITIES LIMITED
                                                                         KEITH KAN

Shared By: