Investment Daily

Hang Seng Index benefitted from U.S. stock market rally last Friday, and theformer increased 202 points on Monday, closing at 29,050 points. HSCEI closed at11,415 points, rising 49 points. Turnover for the morning session reduced to $92.1billion. HKEx announced that it would loosen rules on company listings to allowdual-class shares on the exchange. Its stock price jumped 4%. There’s a papercompany releasing positive profit alert, stimulating the stock price. Its peersclosed mixed.

    Owing to growing confidence both the House and Senate will succeed in passingtax-cut legislation as early as this week, US stock market continued to hit newrecord high on Monday. Financial, technology as well as material stocksperformed well while the Nasdaq once overcome 7,000. The Dow and the Nasdaqrose 140 points (to 24,792) and 58 points (to 6,995) respectively. On the otherhand, funds flow away from bond market, 10 Year US Treasury yield rose 4 basispoints to 2.39%.

    Since global stock market performed well, local blue chips continued to rise in theUS ADR market last night. HK stock market is expected to open higher today.

    However, HK stock market turnover fell below 100 billion HK dollar on Monday,reflecting investors’ lack of buying incentives. It might limit market upside in thenear term.