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Mar 05

Stock Insight - Watch out for more downside

2008 at 3:20 pm by Daniel. Posted in Stocks.

Market Highlights
The local market closed lower for a third day on Tuesday, as
follow-through selling intensified after seeing a tumbling A-share market
that ended up sending the Shanghai Composite Index down by 2.3%.
Continued worries about a deteriorating global economic outlook, along
with investment guru Warren Buffett’s remark that the US economy is
essentially in a recession, also acted to dampen market sentiment.
Overall, selling pressure was concentrated on China plays, whereas
local blue chips were generally firmer. Drifting lower for the entire
trading session after chalking up a gain of more than 300 points when
the market opened, the HSI eventually finished with a 465-point (2.0%)
loss at 23,120, its lowest close in three weeks. Heavy pullbacks in the
China financial, resource and telecom constituents together provided
the biggest drag on the benchmark index. HSBC Holdings (0005.HK,
$120.40, HOLD), which was bolstered by strong post-results buying,
was among the few HSI constituents that ended the down day in
positive territory, while investors also took shelter in defensive stocks
such as Hong Kong and China Gas (0003.HK, $22.85, HOLD) and
Hongkong Electric (0006.HK, $44.50, HOLD). The HSCEI,
meanwhile, took a deeper hit of 468 points (3.5%) as a result of
across-the-board selling in major H-shares. Finishing the day at
12,972, the closing index represented the first time that the H-shares
index ended below the 13,000-point level since 13 February.
PetroChina (0857.HK, $10.82, BUY) and China Life (2628.HK,
$29.00, BUY) remained the top movers of the HSCEI, while none of the
43 HSCEI constituents escaped the market sell-off. Analyst: Wilson
Wong

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For those who want to invest, probably wait until it’s more stable before investing. I’m looking into blue stocks like SGX, Yangzijang and SingTel to invest. Looks like market is going down for more, and I’m gonna pick up some and put in long term investment.