26 ordspråk av Howard Gorges
Howard Gorges
A bit more good news could push the markets higher but any uncertainty could still shake them out.
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Especially ahead of the National People Congress [beginning November 7] with power structure changes -- who's in, who's out and what scores are being settled -- some of the recent scandals have raised the question: whether someone is being prosecuted because it was a sign of a loss of some power or potential loss of power by a particular faction in the government?
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Futures are still trying to point this market up. People are now beginning to say this market could reach 11,000 by the year end.
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Hong Kong took a lead from Wall Street, Tokyo and other overseas markets, and this explains gains this morning.
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In a bid to combat deflation, there was a concerted drive by the Chinese authorities to get people to take their savings and invest in the stock markets.
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In the long-term, I think there is quite a lot of institutional money that might just want to simply have a yield, a relatively high yield, with perhaps a little bit of growth potential in it.
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It may not be long before we see another interest rate cut and this could account for the follow-through buying we are seeing today.
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It's been a bit volatile today. People are selling into strength and buying into weakness.
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It's good to see CLP making a one-off gain last year and investors are happy to see that its earnings from overseas operations are increasing. However, it faces problems ahead as the government looks to change the scheme of controls which apply to local power companies.
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Most investors were expecting a correction this morning after sharp gains in the past few days but when they saw that there wasn't much selling pressure, buyers came back and pushed up the market.
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Overseas money is the primary driver based on a return of a degree of confidence. It is now perceived that most economies have bottomed out and are now on a recovery trend.
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Scores of investors are of the view that interest rates won't go up much higher.
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Some caution is holding back the market.
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Some sort of correction was overdue. The market may now be moving into consolidation after recent sharp gains. There is still a good appetite for stocks.
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The Hong Kong market takes the lead from Wall Street and, to a lesser extent, other overseas markets such as Tokyo.
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