MARKET TALK: HSI +0.9% Midday; 20,738 A Near-Term Cap - UOBKH

14th Jun 2010 05:42

0442 GMT [Dow Jones] HSI +0.9% at 20,047.14 midday, with index recovering back above psychologically-key 20,000 mark, but volume remains light at HK$20.77 billion, as trading interest sluggish amid absence of cues from mainland, as China markets closed for public holiday and will reopen Thursday, says Steven Leung at UOB KayHian. Tips HSI's 250-day moving average, currently at around 20,738, as near-term resistance. "Trading sentiment remains cautious, as we are still looking for fresh news from Europe and the U.S., as China markets are closed." Adds, no rush to buy stocks at current levels; tips 19,000 as good support near-term. EUR's strength supports stocks with exposure in continent, with HSBC (0005.HK) +0.8% at HK$73.70, Esprit (0330.HK) +2.6% at HK$45.45. But some utilities lag, with HK Electric (0006.HK) down 0.1% at HK$46.30, China Resources Power (0836.HK) down 0.4% at HK$15.94. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires June 14, 2010 00:42 ET (04:42 GMT)