HSI Will Be Rangebound In 2Q Between 21,600-24,200, Says Tanrich Securities
The HSI may trade in range, pausing after rebounding 1.1% in the past two sessions. Trading has been choppy for Hong Kong stocks recently; in 43 trading days so far in 2013, there were only eight sessions during which the benchmark index rose or fell by at least 1.0%, and five have occurred in the past ten sessions. “The market has reached a critical point where bulls and bears are evenly matched,” says Jackson Wong, an investment manager at Tanrich Securities. He says it’s too early to say that the market’s correction is over, and the HSI may fall toward 21,600 in 2Q13, representing 38.2% Fibonacci retracement of its rise from near 18,000 on Jun. 4, 2012 to 24,000 on Feb. 4, but “after that we expect the HSI to recover to 24,200, our index target set out at the beginning of the year.” Power Assets (0006.HK) is likely to be steady after posting its FY12 net profit rose 7% on year to HK$9.73 billion.