The index's performance has been quite disappointing the last couple of days. I see no reason for the market to soften. There is quite a lot of money around which should support the market going forward. |
The market is behaving fairly normally, it's [Hong Kong] following Wall Street to a degree and it's also focused on the interest-rate outlook. Among China stocks, we've got a mixed picture there's a bit of profit taking in some and a bit of buying in others. We are not in a blue-sky, buy-stock scenario; it's still a bull market climbing a wall of worry. |
The market was very quiet because most investors didn't want to take any significant positions ahead of the Christmas holidays. |
The volume is kind of low. |
There is follow-through buying of select H-shares, mainly commodity stocks. |
There is some profit-taking after yesterday's gains, with many investors investors cautious over interest rates. |
They won't go mad; they're coming back after being in the doldrums. |
We are getting a lot of rotational buying on blue-chip stocks right now. People are buying stocks when they are hurt or lagging. |
We could have another surge in the markets later in the year, around September or October, as the economies show further signs of getting stronger. |
Yesterday's announcement by the Hong Kong Mortgage Corporation that the government would provide a top-up guarantee on mortgages was good for the market. But we are still a bit cautious. It was very light turnover and there was no real selling pressure. |
You can't just get people to suddenly discover integrity overnight. |