HSI Down 1.8% Midday, Fresh 26 Month Low, China Worries Weigh
Monitor
HSI Down 1.8% Midday, Fresh 26 Month Low, China Worries Weigh
While rising recession risks for U.S. and European economies and the
ongoing European debt crisis are often cited for as reasons for the
stock market weakness, it's likely the worry that the Chinese economy
is itself in the deep trouble that have resulted in the recent selloff
in Hong Kong stocks, as evidenced by the H-share index's 11.9% slump
last week (vs the U.S. indices' around 6% decline).
Going into 4Q, the market "will not be short of uncertainties," says
UBS, as it expects continued liquidity tightening, further investment
and business slowdown, and property sector destocking from China, and
"worries about inflation and Chinese banking system may not dissipate
as well." ICBC (1398.HK), China's largest bank, perhaps optimises
investors' China worry; the stock is down 3.5% at HK$3.82 at midday,
and has fallen 19.9% in 6 sessions.
The HSI is down 1.8% at 17,352.00 at midday on a modest volume of HK
$34.41 billion; its intraday low of 17,313.78 is the lowest since July
13, 2009
The Sensex is likely to open slightly higher, tracking a 0.1% rise in
SGX Nifty futures and a positive close on Wall Street Friday, and is
set to trade in a narrow 16,000-16,250 range today on a lack of
domestic triggers, says a local analyst.
Emkay Global says "perplexity continues to prevail" over the direction
of the benchmark, but a short-covering-driven bounce ahead of the
expiry of September derivatives Thursday cannot be ruled out.
The analyst tips state-run fuel retailers Indian Oil Corp. (530965.BY)
and Bharat Petroleum (500547.BY) to continue their outperformance on
expectations of lower fuel subsidy losses, with Nymex crude dipping
below $80/bbl.
The Sensex ended Friday down 1.2% at 16,162.06
http://marketpin.blogspot.com/2011/09/hsi-down-18-midday-fresh-26-month-low.html