MARKET TALK: HSI +1.5% Midday; Sell Into Strength - Strategist

8th Jul 2010 05:45

0445 GMT [Dow Jones] HSI +1.5% at 20,148.36 midday, bolstered by gains in U.S. stocks; volume improves tad but remains sluggish at HK$24.88 billion. Strategist at brokerage arm of Chinese bank says any HK market rally in short term likely to be aided by Wall Street, on hopes of solid corporate earnings. Still, macro picture is that economic slowdown seems inevitable so "we're advising clients to sell into strength." Thinks re-test of 19,000 support for HSI inevitable. Blue chips rising at least 2% include HSBC (0005.HK), China Merchants (0144.HK), Esprit (0330.HK), Li & Fung (0494.HK), PetroChina (0857.HK), Cosco Pacific (1199.HK), Foxconn International (2038.HK), Bank of Communications (3328.HK) - but no individual stocks or sector standing out. ([email protected]) Contact us in Singapore. 65 64154 140; [email protected] (END) Dow Jones Newswires July 08, 2010 00:45 ET (04:45 GMT)