INVESTMENT DAILY

Hong Kong market was soft on Wednesday. HSI fell into negative territory for most of the day, it dipped 85 points to close at 22,586. While HSCEI rallied 133 points followed A share market to close at 11,269. A share market further rose 1.3% to 3,061. Market turnover reported HK$108bn. Investors were cautious and wait to see the results of FOMC meeting. China Rail Construction (1186 HK) resume trading today and outperformed market.

    The Federal Open Market Committee’s statement modified its “considerable time” language saying it “can be patient” about the timing of the first rate hike. Besides, chairman Yellen said that the Fed would not adjust rate upward in the two coming meetings. Investors believed that the Fed sent a dovish signal to the market. US stock market staged a strong rebound with the Dow and the Nasdaq closed 288 points (to 17,357) and 96 points (to 4,644) higher respectively. Besides, oil price also rebounded, but the rally was capped by unexpected surprise increase in oil inventory. It rose nearly 1% to US$56.5 per barrel.

    Weakness of Ruble triggered selling pressure on the emerging market including HK market. However, the Fed said that it can be patient on rate hike, might trigger rebound on HK market today. Looking ahead, investors will eye on the Russian financial crisis will spread.

    Technical Analysis

    Hang Seng Index closed with gyro on Wednesday, Technically, Hang Seng Index dropped below October low’s of (22,566) couple with MACD bearish gap expand, showing that momentum remained weak. Hang Seng index first support would be 22,500, while next support would be at seen at 22,000. For resistance, 250DMA (23,221) would become the first resistance, while next resistance would be seen at 50DMA(23,521).