Asian shares ended higher, as Japanese investors showed renewed confidence, while strong trading debuts from several companies propelled shares in Hong Kong and Shanghai.
HK opened up then down. When I left to go to a meeting it was down over 200. I was still at a meeting when the market closed up 457 to close at 28,228 on HK$129 billion turnover. Some were disappointed with the turnover, but we must remember that last year the daily average was only HK$30 billion, and in the first 6 months of this year it was only HK$60 billion. So HK$120 billion days are nothing to sneeze at.
Market Indices
Australia All Ordinaries 6687.70 + 0.31%
Bombay Sensex* 18174.74 + 4.30%
Hong Kong Hang Seng 28228.04 + 1.65%
Japan Nikkei 17159.90 + 0.56%
Shanghai Composite 5715.89 + 0.41%
Singapore STI 3865.75 + 1.19%
South Korea Composite 2014.13 + 0.07%
Taiwan Weighted 9639.83 - 0.80%
*Intraday trading
Tuesday, October 09, 2007
Monday, October 08, 2007
HK: International Financial Centre?
HK wants to be an international financial centre. In many ways, it already is. We have 70 of the world's top 100 banks operating here. Over 200 of the 280 banks operating in HK are foreign registered. Of the US$ 560 billion in deposits, over half is in foreign currencies. Most of the world's top investment banks are already here. And the list goes on.
But in terms of the geographical spread of our listed companies, we are still tied to China which accounts of over 60% of our market capitalisation, 70% of our daily trading volume, and 90% of our IPO's. So where did we go wrong?
Actually, we did nothing wrong. We are just a century or two too late. Over 100 years ago, London was already floating China railway bonds! When New York outgrew London because of the size of the US domestic economy (something we are already seeing with Shanghai and China) London became bankers to the world. New York was content as it was too insular and too busy. HK must not make this mistake.
We must make ourselves attractive to issuers in other markets and follow London's example. NY is wise to the game. It has already spent millions of dollars commissioning studies of its competitiveness. And so has London, after all it invented the term international financial centre. So it isn't going to be easy this time around. They didn't like losing the Chinese IPO market and sure as hell would not want anyone poaching in their backyard.
We have 3 problems:
1. All the major investment houses are either US or UK based.
They have divided up the world among their subsidiaries into The Americas, Europe Africa and the Middle East, and Asia. It would take a very brave banker from one of the Asian subsidiaries to poach on something in the Europe sphere of influence. And that is why so many Russian companies (over 200) are listed in London. The bankers in Moscow are all sent from the UK. That, and the loose listing regime of AIM (more on that later).
2. Bankers sent out here are looking to their year end bonuses and are reluctant to invest their time in developing other markets.
And who can blame them, after all they have quota's and targets to meet. And our local investment banks are too small to take on market development work.
3. Our listing regime does not make it easy to list in HK.
Our market grew out of a purely domestic (HK) need, and protection of the small retail investors figure very high in terms of priorities. However, retail investors now account for less and less of the market share but the legislation is still skewed towards their protection. Fund managers tell us that the rule of law is of paramount importance, and it is. Especially, after a market blow up when every man and his dog is "asking where are the regulators?". But in the overall scheme of things fund managers will go where there is a profit to be made. You don't keep your job for long if you refuse to go into a market because of a lack of regulations while everyone is making a bundle there.
Dubai International Financial Exchange has spent millions building an excellent legal and regulatory infrastructure but only has 3 listings in 3 years to show for it. Ultimately, a market has to have a balance of regulation and openess. That is where AIM has done extremely well.
So how to solve these problems? The HK Government has to take the lead in longer term market development. This is not unfamiliar territory. HK has an excellent organisation in the Trade development Council. The TDC was set up to promote HK products made by small and medium enterprises too small to market them effectively overseas. It has trade offices all over the world promoting HK products (these days they are mostly made in Shenzhen but designed and sold by HK firms), organising trade shows, and bringing buyers to HK to meet with local companies.
Recently, it has made a very far sighted move into promoting HK services (including financial services) as well as the more traditional products. I have been on numerous trade missions with them promoting HK as a listing destination including Saudi Arabia, Abu Dhabi, Dubai, Kazakhstan, Taiwan, Moscow and St. Petersburg not to mention the promotions into China. It has done a lot but much remains to be done.
We need to have financial services attachees or specialists in some of the TDC offices abroad who understand what HK can do and can sniff out opportunities for HK financial services firms e.g. fund raising for toll roads in Vietnam, golf courses in St. Petersburg, joint venture banks in Moscow, etc. We have done all this before in China. We have the expertise. We can do it again. But, we need to know that there are opportunities.
Then, we need financial specialists on the HK staff to co-ordinate the efforts on this side. And finally, we need HK government support to undertake some of these projects similar to Exim banks facilities and guaranties. If the US/UK banks are not interested, we may be able to bring in the Chinese banks. After all, they are already making acquisitions and forays abroad.
--------------------------------------------------------------------------------
Coming back down to earth, let's look at how the Asian markets fared.
Most shares made strong gains across the Asian-Pacific region. Hong Kong closed slightly lower on profit-taking pressure after tracking record gains in Shanghai as financial firms played catch-up following a week-long holiday.
Market Indices
Australia All Ordinaries 6667.20 + 0.75%
Bombay Sensex* 17372.79 - 2.30%
Hong Kong Hang Seng 27770.29 - 0.22%
Shanghai Composite 5692.75 + 2.53%
Singapore STI 3820.31 - 0.06%
South Korea Composite 2012.82 + 0.84%
Taiwan Weighted 9717.17 + 1.04%
*Intraday trading
But in terms of the geographical spread of our listed companies, we are still tied to China which accounts of over 60% of our market capitalisation, 70% of our daily trading volume, and 90% of our IPO's. So where did we go wrong?
Actually, we did nothing wrong. We are just a century or two too late. Over 100 years ago, London was already floating China railway bonds! When New York outgrew London because of the size of the US domestic economy (something we are already seeing with Shanghai and China) London became bankers to the world. New York was content as it was too insular and too busy. HK must not make this mistake.
We must make ourselves attractive to issuers in other markets and follow London's example. NY is wise to the game. It has already spent millions of dollars commissioning studies of its competitiveness. And so has London, after all it invented the term international financial centre. So it isn't going to be easy this time around. They didn't like losing the Chinese IPO market and sure as hell would not want anyone poaching in their backyard.
We have 3 problems:
1. All the major investment houses are either US or UK based.
They have divided up the world among their subsidiaries into The Americas, Europe Africa and the Middle East, and Asia. It would take a very brave banker from one of the Asian subsidiaries to poach on something in the Europe sphere of influence. And that is why so many Russian companies (over 200) are listed in London. The bankers in Moscow are all sent from the UK. That, and the loose listing regime of AIM (more on that later).
2. Bankers sent out here are looking to their year end bonuses and are reluctant to invest their time in developing other markets.
And who can blame them, after all they have quota's and targets to meet. And our local investment banks are too small to take on market development work.
3. Our listing regime does not make it easy to list in HK.
Our market grew out of a purely domestic (HK) need, and protection of the small retail investors figure very high in terms of priorities. However, retail investors now account for less and less of the market share but the legislation is still skewed towards their protection. Fund managers tell us that the rule of law is of paramount importance, and it is. Especially, after a market blow up when every man and his dog is "asking where are the regulators?". But in the overall scheme of things fund managers will go where there is a profit to be made. You don't keep your job for long if you refuse to go into a market because of a lack of regulations while everyone is making a bundle there.
Dubai International Financial Exchange has spent millions building an excellent legal and regulatory infrastructure but only has 3 listings in 3 years to show for it. Ultimately, a market has to have a balance of regulation and openess. That is where AIM has done extremely well.
So how to solve these problems? The HK Government has to take the lead in longer term market development. This is not unfamiliar territory. HK has an excellent organisation in the Trade development Council. The TDC was set up to promote HK products made by small and medium enterprises too small to market them effectively overseas. It has trade offices all over the world promoting HK products (these days they are mostly made in Shenzhen but designed and sold by HK firms), organising trade shows, and bringing buyers to HK to meet with local companies.
Recently, it has made a very far sighted move into promoting HK services (including financial services) as well as the more traditional products. I have been on numerous trade missions with them promoting HK as a listing destination including Saudi Arabia, Abu Dhabi, Dubai, Kazakhstan, Taiwan, Moscow and St. Petersburg not to mention the promotions into China. It has done a lot but much remains to be done.
We need to have financial services attachees or specialists in some of the TDC offices abroad who understand what HK can do and can sniff out opportunities for HK financial services firms e.g. fund raising for toll roads in Vietnam, golf courses in St. Petersburg, joint venture banks in Moscow, etc. We have done all this before in China. We have the expertise. We can do it again. But, we need to know that there are opportunities.
Then, we need financial specialists on the HK staff to co-ordinate the efforts on this side. And finally, we need HK government support to undertake some of these projects similar to Exim banks facilities and guaranties. If the US/UK banks are not interested, we may be able to bring in the Chinese banks. After all, they are already making acquisitions and forays abroad.
--------------------------------------------------------------------------------
Coming back down to earth, let's look at how the Asian markets fared.
Most shares made strong gains across the Asian-Pacific region. Hong Kong closed slightly lower on profit-taking pressure after tracking record gains in Shanghai as financial firms played catch-up following a week-long holiday.
Market Indices
Australia All Ordinaries 6667.20 + 0.75%
Bombay Sensex* 17372.79 - 2.30%
Hong Kong Hang Seng 27770.29 - 0.22%
Shanghai Composite 5692.75 + 2.53%
Singapore STI 3820.31 - 0.06%
South Korea Composite 2012.82 + 0.84%
Taiwan Weighted 9717.17 + 1.04%
*Intraday trading
Friday, October 05, 2007
Correction? What Correction?
Asian markets were mixed, with Japanese shares down ahead of a three-day weekend, while Hong Kong rebounded on bargain hunting following a two-session slump. Stocks in HKL resume the rally with 3.18% bounce. The benchmark Hang Seng Index rose 857 points to close at 27,831 which is still 1,000 points off the intra day high on Wednesday.
Market Indices
Australia All Ordinaries 6617.30 + 0.57%
Bombay Sensex* 17732.85 - 0.25%
Hong Kong Hang Seng 27831.52 + 3.18%
Japan Nikkei 17065.04 - 0.16%
Singapore STI 3822.62 + 1.03%
South Korea Composite 1996.03 - 0.38%
Taiwan Weighted 9617.26 - 0.11%
*Intraday trading
Market Indices
Australia All Ordinaries 6617.30 + 0.57%
Bombay Sensex* 17732.85 - 0.25%
Hong Kong Hang Seng 27831.52 + 3.18%
Japan Nikkei 17065.04 - 0.16%
Singapore STI 3822.62 + 1.03%
South Korea Composite 1996.03 - 0.38%
Taiwan Weighted 9617.26 - 0.11%
*Intraday trading
Thursday, October 04, 2007
A 2-Day Correction ... Wonder of Wonders!
Asian markets ended lower, reacting to a lower close on Wall Street, as investors continued to take profits from recent gains. HK was not helped by an article in the South China Morning Post (SCMP) suggesting that the Chinese authorities have banned the simultaneous listings of Chinese companies on the Shanghai and HK exchanges. In future they are supposed to list in Shanghai first and then later in HK.
This of course will have an impact on the HK market. The paper suggested that companies would choose to list in Shanghai because of the higher P/E's compared to HK. They appear to have forgotten that Chinese shares do not enjoy the high P/E's on listing as the CSRC apparently puts pressure on companies to lower their P/E's in order to ensure "successful" underwriting and aftermarket trading.
That does not mean that it would not affect HK. If the company achieves a P/E of, say, 40 times in the aftermarket, how can the management justify a later listing in HK for half of that? Actually, it will be quite easy as there is no market for secondary issues in China, and any additional fund raising will typically cause the stock price to fall. However, in the meantime, while we are all learning the new realities, China keeps chugging along with the lion's share (25%) of the worldwide IPO market. Unfortunately HK has been relegated to 8th place.
You can see how this affected sentiment by the market performance yesterday and today. But isn't it uncanny that the market tanked immediately after lunch as if a signal has been given? Interesting!
Market Indices
Australia All Ordinaries 6579.90 - 1.28%
Bombay Sensex* 17753.27 - 0.53%
Hong Kong Hang Seng 26973.98 - 1.84%
Japan Nikkei 17092.49 - 0.62%
Singapore STI 3783.81 + 0.78%
South Korea Composite 2003.60 - 0.52%
Taiwan Weighted 9627.39 - 0.75%
*Intraday trading
This of course will have an impact on the HK market. The paper suggested that companies would choose to list in Shanghai because of the higher P/E's compared to HK. They appear to have forgotten that Chinese shares do not enjoy the high P/E's on listing as the CSRC apparently puts pressure on companies to lower their P/E's in order to ensure "successful" underwriting and aftermarket trading.
That does not mean that it would not affect HK. If the company achieves a P/E of, say, 40 times in the aftermarket, how can the management justify a later listing in HK for half of that? Actually, it will be quite easy as there is no market for secondary issues in China, and any additional fund raising will typically cause the stock price to fall. However, in the meantime, while we are all learning the new realities, China keeps chugging along with the lion's share (25%) of the worldwide IPO market. Unfortunately HK has been relegated to 8th place.
You can see how this affected sentiment by the market performance yesterday and today. But isn't it uncanny that the market tanked immediately after lunch as if a signal has been given? Interesting!
Market Indices
Australia All Ordinaries 6579.90 - 1.28%
Bombay Sensex* 17753.27 - 0.53%
Hong Kong Hang Seng 26973.98 - 1.84%
Japan Nikkei 17092.49 - 0.62%
Singapore STI 3783.81 + 0.78%
South Korea Composite 2003.60 - 0.52%
Taiwan Weighted 9627.39 - 0.75%
*Intraday trading
Wednesday, October 03, 2007
Roller Coaster Day
Asian stocks ended mixed, as Tokyo shares hit a two-month high and Hong Kong stocks suffered harsh reversals from profit-taking. When we went to lunch today, the HK market was up some 300 points. After lunch, the HS Index plunged over 719 points to close at 27,479 with record turnover of HK$209 billion.
Is this the beginning of the end? Most likely not. The market was up over 1,000 yesterday for no apparent reason and surely it is due for a correction. Since mid August when the market plunged to 19,500 intra-day, we have gained a handsome 8,000 points. Surely time to take a little profit.
Market Indices
Australia All Ordinaries 6665.40 - 0.03%
Bombay Sensex* 17719.95 + 2.26%
Hong Kong Hang Seng 27479.94 - 2.55%
Japan Nikkei 17199.89 + 0.90%
Singapore STI 3754.62 - 1.03%
South Korea Composite** 2014.09 + 2.62%
Taiwan Weighted 9700.07 + 0.80%
*Intraday trading
Is this the beginning of the end? Most likely not. The market was up over 1,000 yesterday for no apparent reason and surely it is due for a correction. Since mid August when the market plunged to 19,500 intra-day, we have gained a handsome 8,000 points. Surely time to take a little profit.
Market Indices
Australia All Ordinaries 6665.40 - 0.03%
Bombay Sensex* 17719.95 + 2.26%
Hong Kong Hang Seng 27479.94 - 2.55%
Japan Nikkei 17199.89 + 0.90%
Singapore STI 3754.62 - 1.03%
South Korea Composite** 2014.09 + 2.62%
Taiwan Weighted 9700.07 + 0.80%
*Intraday trading
Tuesday, October 02, 2007
Who says the market has to be "rational"?
On the back of a 190 point rise in the Dow on Monday, the HK market finished up over 1,057 at 28,199 accompanied by record turnover of HK$163 billion. Turnover this high can only be attributed to institutional buyers who are afraid of being left behind in the rush to "buy China".
As today is the first trading day of the last quarter, the tsunami of foreign institutional funds hitting our shores would guarantee that the year will end on a high note.
The following statistics are made available by the HKEx:
- The Hang Seng Index (HSI) closed at a record high of 28199.75 today, up 1057.28 points, the fourth largest point rise in history. It was the largest point rise since 20 August 2007 when the index was up 1208.50 points. The HSI's 3.90 per cent rise today was its largest in per cent terms since 19 September 2007 when the index was up 3.98 per cent.
- The Hang Seng China Enterprises Index (H-shares index) closed at a record high of 17973.87 today, up 955.93 points, or 5.62 per cent.
- Today's securities market turnover value was $163,942 million, the largest ever.
- Today's turnover value for H-share and red-chip companies was $74,737 million and $18,778 million respectively.
- Today's derivative warrants turnover was $27,987 million, the largest ever.
- A record high total of 1,019,309 trades were concluded today.
- Today's closing market capitalisation was a new high of $20,757.1 billion. The previous trading day's ( 28 September 2007 ) closing market capitalisation was $20,054.9 billion.
Top 10 daily turnover values in history (Up to 2 October 2007)
Daily turnover value in HK$
Main Board GEM Market total
Rank ($) ($) ($) Date
1 163,132,418,781 810,057,000^ 163,942,475,781 2/10/2007
2 148,575,515,387 634,708,800 149,210,224,187 28/9/2007
3 147,053,974,999 831,473,240 147,885,448,239 27/9/2007
4 140,057,412,983 814,970,399 140,872,383,382 24/9/2007
5 138,709,411,014 657,991,096 139,367,402,110 19/9/2007
6 132,283,181,902 710,132,583 132,993,314,485 21/9/2007
7 129,178,392,000 605,960,271 129,784,352,271 25/9/2007
8 126,346,932,691 696,609,067 127,043,541,758 27/8/2007
9 122,942,024,498 639,900,384 123,581,924,882 28/8/2007
10 121,055,884,537 1,314,151,868 122,370,036,405 1/8/2007
^ Figures rounded
Top 10 point rise in history
Up to 2 October 2007
Rank Point rise Date
1 1705.41 29/10/1997
2 1326.24 2/2/1998
3 1208.50 20/8/2007
4 1057.28 2/10/2007
5 978.66 3/9/1997
6 977.79 19/9/2007
7 816.07 25/9/2000
8 806.59 16/10/1998
9 723.99 17/3/2000
10 722.96 31/5/2000
Elsewhere in the region, stocks gained across Asia, with several major indices touching record levels as investors shrugged off continued credit-crunch woes.
Market Indices
Australia All Ordinaries 6667.60 + 1.33%
Bombay Sensex* 17328.62 + 0.22%
Hong Kong Hang Seng 28199.75 + 3.90%
Japan Nikkei 17046.78 + 1.19%
Singapore STI 3790.54 + 0.94%
South Korea Composite 2014.09 + 2.62%
Taiwan Weighted 9623.25 + 1.42%
*Intraday trading
As today is the first trading day of the last quarter, the tsunami of foreign institutional funds hitting our shores would guarantee that the year will end on a high note.
The following statistics are made available by the HKEx:
- The Hang Seng Index (HSI) closed at a record high of 28199.75 today, up 1057.28 points, the fourth largest point rise in history. It was the largest point rise since 20 August 2007 when the index was up 1208.50 points. The HSI's 3.90 per cent rise today was its largest in per cent terms since 19 September 2007 when the index was up 3.98 per cent.
- The Hang Seng China Enterprises Index (H-shares index) closed at a record high of 17973.87 today, up 955.93 points, or 5.62 per cent.
- Today's securities market turnover value was $163,942 million, the largest ever.
- Today's turnover value for H-share and red-chip companies was $74,737 million and $18,778 million respectively.
- Today's derivative warrants turnover was $27,987 million, the largest ever.
- A record high total of 1,019,309 trades were concluded today.
- Today's closing market capitalisation was a new high of $20,757.1 billion. The previous trading day's ( 28 September 2007 ) closing market capitalisation was $20,054.9 billion.
Top 10 daily turnover values in history (Up to 2 October 2007)
Daily turnover value in HK$
Main Board GEM Market total
Rank ($) ($) ($) Date
1 163,132,418,781 810,057,000^ 163,942,475,781 2/10/2007
2 148,575,515,387 634,708,800 149,210,224,187 28/9/2007
3 147,053,974,999 831,473,240 147,885,448,239 27/9/2007
4 140,057,412,983 814,970,399 140,872,383,382 24/9/2007
5 138,709,411,014 657,991,096 139,367,402,110 19/9/2007
6 132,283,181,902 710,132,583 132,993,314,485 21/9/2007
7 129,178,392,000 605,960,271 129,784,352,271 25/9/2007
8 126,346,932,691 696,609,067 127,043,541,758 27/8/2007
9 122,942,024,498 639,900,384 123,581,924,882 28/8/2007
10 121,055,884,537 1,314,151,868 122,370,036,405 1/8/2007
^ Figures rounded
Top 10 point rise in history
Up to 2 October 2007
Rank Point rise Date
1 1705.41 29/10/1997
2 1326.24 2/2/1998
3 1208.50 20/8/2007
4 1057.28 2/10/2007
5 978.66 3/9/1997
6 977.79 19/9/2007
7 816.07 25/9/2000
8 806.59 16/10/1998
9 723.99 17/3/2000
10 722.96 31/5/2000
Elsewhere in the region, stocks gained across Asia, with several major indices touching record levels as investors shrugged off continued credit-crunch woes.
Market Indices
Australia All Ordinaries 6667.60 + 1.33%
Bombay Sensex* 17328.62 + 0.22%
Hong Kong Hang Seng 28199.75 + 3.90%
Japan Nikkei 17046.78 + 1.19%
Singapore STI 3790.54 + 0.94%
South Korea Composite 2014.09 + 2.62%
Taiwan Weighted 9623.25 + 1.42%
*Intraday trading
Monday, October 01, 2007
Holiday in HK
Asian stocks rose modestly, with Tokyo ending higher after the release of a key corporate-sentiment survey. Markets in Hong Kong and Shanghai were closed for Chinese National Holiday holidays.
Market Indices
Australia All Ordinaries 6579.80 - 0.02%
Bombay Sensex 17328.62 + 0.22%
Hong Kong Hang Seng 27142.47 + 0.29%
Japan Nikkei 16845.96 + 0.36%
Singapore STI 3755.22 + 1.32%
South Korea Composite 1962.67 + 0.83%
Taiwan Weighted 9488.50 + 0.13%
Market Indices
Australia All Ordinaries 6579.80 - 0.02%
Bombay Sensex 17328.62 + 0.22%
Hong Kong Hang Seng 27142.47 + 0.29%
Japan Nikkei 16845.96 + 0.36%
Singapore STI 3755.22 + 1.32%
South Korea Composite 1962.67 + 0.83%
Taiwan Weighted 9488.50 + 0.13%
Friday, September 28, 2007
So Who's Counting the New Highs?
Asian markets closed mostly higher, with Hong Kong and Shanghai ending at record high levels, but profit-taking dragged Japanese shares lower as institutional investors chase Asian themes over the past month.
This was most evident in the HK market which is a proxy for the Chinese Economy. Fund managers cannot be seen to have nee left behind in the final 2 quarters of the year.
The following statistics are made available by the HKEx:
Securities market
- The Hang Seng Index closed at a record high of 27142.47 today, up 77.32 points.
- Today's securities market turnover value was $149,210 million, the largest ever.
- Today's closing market capitalisation was a new high of $20,054.9 billion, exceeding the $20 trillion mark for the first time. The previous trading day's (27 September 2007) closing market capitalisation was $19,937.1 billion.
Market Indices
Australia All Ordinaries 6580.90 + 0.50%
Bombay Sensex* 17268.95 + 0.69%
Hong Kong Hang Seng 27142.47 + 0.29%
Japan Nikkei 16785.69 - 0.28%
Shanghai Composite 5552.30 + 2.64%
Singapore STI 3706.23 - 0.23%
South Korea Composite 1946.48 + 0.06%
Taiwan Weighted 9411.95 - 0.02%
*Intraday trading
This was most evident in the HK market which is a proxy for the Chinese Economy. Fund managers cannot be seen to have nee left behind in the final 2 quarters of the year.
The following statistics are made available by the HKEx:
Securities market
- The Hang Seng Index closed at a record high of 27142.47 today, up 77.32 points.
- Today's securities market turnover value was $149,210 million, the largest ever.
- Today's closing market capitalisation was a new high of $20,054.9 billion, exceeding the $20 trillion mark for the first time. The previous trading day's (27 September 2007) closing market capitalisation was $19,937.1 billion.
Market Indices
Australia All Ordinaries 6580.90 + 0.50%
Bombay Sensex* 17268.95 + 0.69%
Hong Kong Hang Seng 27142.47 + 0.29%
Japan Nikkei 16785.69 - 0.28%
Shanghai Composite 5552.30 + 2.64%
Singapore STI 3706.23 - 0.23%
South Korea Composite 1946.48 + 0.06%
Taiwan Weighted 9411.95 - 0.02%
*Intraday trading
Thursday, September 27, 2007
We're Back!
Asian shares closed sharply higher as markets took their cue from Wall Street. Financial companies paced gainers in Japan, while Hong Kong reached a new record close.
The following statistics are made available by the HKEx:
Securities market
- The Hang Seng Index closed at a record high of 27065.15 today, up 634.86 points.
- Today's securities market turnover value was $147,885 million, the largest ever.
- Today's closing market capitalisation was a new high of $19,937 billion. The previous trading day's (25 September 2007) closing market capitalisation was $19,504 billion.
Market Indices
Australia All Ordinaries 6548.00 + 0.87%
Bombay Sensex* 17133.51* + 1.25%
Hong Kong Hang Seng 27065.15 + 2.40%
Japan Nikkei 16832.22 + 2.41%
Shanghai Composite 5409.40 + 1.33%
Singapore STI 3714.77 + 1.77%
South Korea Composite 1945.28 + 1.36%
Taiwan Weighted 9413.65 + 1.69%
* Intraday trading
The following statistics are made available by the HKEx:
Securities market
- The Hang Seng Index closed at a record high of 27065.15 today, up 634.86 points.
- Today's securities market turnover value was $147,885 million, the largest ever.
- Today's closing market capitalisation was a new high of $19,937 billion. The previous trading day's (25 September 2007) closing market capitalisation was $19,504 billion.
Market Indices
Australia All Ordinaries 6548.00 + 0.87%
Bombay Sensex* 17133.51* + 1.25%
Hong Kong Hang Seng 27065.15 + 2.40%
Japan Nikkei 16832.22 + 2.41%
Shanghai Composite 5409.40 + 1.33%
Singapore STI 3714.77 + 1.77%
South Korea Composite 1945.28 + 1.36%
Taiwan Weighted 9413.65 + 1.69%
* Intraday trading
Wednesday, September 26, 2007
HK Took A Holiday from Setting New Records
Asian shares closed mixed, with Shanghai losing ground on fears of further tightening, while Japan stocks posted slight gains and India's stock market reached another record high.
Market Indices
Australia All Ordinaries 6491.40 + 0.01%
Bombay Sensex 16921.39 + 0.13%
Hong Kong Hang Seng* 26430.29* - 0.46%
Japan Nikkei 16435.74 + 0.21%
Shanghai Composite 5338.52 - 1.61%
Singapore STI 3650.09 + 0.70%
South Korea Composite* 1919.26* + 0.54%
Taiwan Weighted 9257.47 + 1.67%
* Markets in Hong Kong and South Korea were closed for holidays.
Market Indices
Australia All Ordinaries 6491.40 + 0.01%
Bombay Sensex 16921.39 + 0.13%
Hong Kong Hang Seng* 26430.29* - 0.46%
Japan Nikkei 16435.74 + 0.21%
Shanghai Composite 5338.52 - 1.61%
Singapore STI 3650.09 + 0.70%
South Korea Composite* 1919.26* + 0.54%
Taiwan Weighted 9257.47 + 1.67%
* Markets in Hong Kong and South Korea were closed for holidays.
Tuesday, September 25, 2007
Finally A Rest
Asian shares closed mixed, with airline companies weighing on indexes in Hong Kong and Shanghai, while metal stocks paced gainers in Japan, boosted by higher commodities prices.
Market Indices
Australia All Ordinaries 6490.90 + 0.46%
Bombay Sensex 16899.54 + 0.32%
Hong Kong Hang Seng 26430.29 - 0.46%
Japan Nikkei 16401.73 + 0.55%
Shanghai Composite 5425.88 - 1.08%
Singapore STI 3624.82 - 0.39%
South Korea Composite* 1919.26* + 0.54%
Taiwan Weighted* 9105.28* + 1.36%
* South Korean and Taiwanese markets were closed for holidays.
Market Indices
Australia All Ordinaries 6490.90 + 0.46%
Bombay Sensex 16899.54 + 0.32%
Hong Kong Hang Seng 26430.29 - 0.46%
Japan Nikkei 16401.73 + 0.55%
Shanghai Composite 5425.88 - 1.08%
Singapore STI 3624.82 - 0.39%
South Korea Composite* 1919.26* + 0.54%
Taiwan Weighted* 9105.28* + 1.36%
* South Korean and Taiwanese markets were closed for holidays.
Monday, September 24, 2007
4th Consecutive High
Asian shares closed higher, with Hong Kong hitting a record close for the fourth consecutive day, while resource stocks led both Shanghai and Sydney to new record highs.
Market Indices
Australia All Ordinaries 6461.10 + 1.41%
Bombay Sensex* 16845.83* + 1.70%
Hong Kong Hang Seng 26551.94 + 2.74%
Japan Nikkei** 16312.61** - 0.62%
Shanghai Composite 5485.01 + 0.56%
Singapore STI 3639.02 + 2.73%
South Korea Composite** 1919.26** + 0.54%
Taiwan Weighted** 9105.28** + 1.36%
* Intraday trading
** As of Sept. 21. Japanese, South Korean and Taiwanese markets were closed Monday for holidays.
Market Indices
Australia All Ordinaries 6461.10 + 1.41%
Bombay Sensex* 16845.83* + 1.70%
Hong Kong Hang Seng 26551.94 + 2.74%
Japan Nikkei** 16312.61** - 0.62%
Shanghai Composite 5485.01 + 0.56%
Singapore STI 3639.02 + 2.73%
South Korea Composite** 1919.26** + 0.54%
Taiwan Weighted** 9105.28** + 1.36%
* Intraday trading
** As of Sept. 21. Japanese, South Korean and Taiwanese markets were closed Monday for holidays.
Friday, September 21, 2007
3rd Consecutive High
Hong Kong stocks reached their third consecutive record high. What can I say?
Market Indices
Australia All Ordinaries 6371.20 - 0.46%
Bombay Sensex* 16491.73 + 0.88%
Hong Kong Hang Seng 25843.78 + 0.56%
Japan Nikkei 16312.61 - 0.62%
Shanghai Composite 5454.67 - 0.28%
Singapore STI* 3544.69 - 0.22%
South Korea Composite 1919.26 + 0.54%
Taiwan Weighted 9105.28 + 1.36%
*Intraday trading
Market Indices
Australia All Ordinaries 6371.20 - 0.46%
Bombay Sensex* 16491.73 + 0.88%
Hong Kong Hang Seng 25843.78 + 0.56%
Japan Nikkei 16312.61 - 0.62%
Shanghai Composite 5454.67 - 0.28%
Singapore STI* 3544.69 - 0.22%
South Korea Composite 1919.26 + 0.54%
Taiwan Weighted 9105.28 + 1.36%
*Intraday trading
Thursday, September 20, 2007
Most Asian indexes advanced for the second straight day. Hong Kong reaching a new record and Japanese stocks giving back early gains. Australia's central bank drained liquidity in a sign the credit crunch is easing its grip.
The story in HK is "same old, same old". Actually, it is getting a bit boring with new highs everyday. But as a trader, we must remember the old adage "Trade what you see, not what you think!" In other words don't argue with the market, you are not the only one with smarts.
Market Indices
Australia All Ordinaries 6400.90 + 0.61%
Bombay Sensex* 16347.95* + 0.15%
Hong Kong Hang Seng 25701.13 + 0.57%
Japan Nikkei 16413.79 + 0.20%
Shanghai Composite 5470.06 + 1.39%
Singapore STI 3552.46 - 1.17%
South Korea Composite 1908.97 + 0.33%
Taiwan Weighted 8983.03 + 0.63%
* Intraday trading
The story in HK is "same old, same old". Actually, it is getting a bit boring with new highs everyday. But as a trader, we must remember the old adage "Trade what you see, not what you think!" In other words don't argue with the market, you are not the only one with smarts.
Market Indices
Australia All Ordinaries 6400.90 + 0.61%
Bombay Sensex* 16347.95* + 0.15%
Hong Kong Hang Seng 25701.13 + 0.57%
Japan Nikkei 16413.79 + 0.20%
Shanghai Composite 5470.06 + 1.39%
Singapore STI 3552.46 - 1.17%
South Korea Composite 1908.97 + 0.33%
Taiwan Weighted 8983.03 + 0.63%
* Intraday trading
Wednesday, September 19, 2007
First Cut Is The Deepest
To paraphrase Rod Stewart's song.
The FOMC surprised everyone by cutting the Fed Funds rate by 1/2% instead of the widely expected 1/4%. The US market reacted by rising 335. HK opened up 900 and at one stage was up over 1,000. The market closed at 25,555 up 977 on heavy turnover of HK$138.7 billion.
The Fed moved aggressively in the first rate cut in 4 years sending out a very strong signal that it will do what is necessary to stop the sub prime woes from spilling into the broader market. The issue is one of moral hazard. Should the Fed bail out those financially irresponsible who put us into this mess in the first place. At the end, it was a no brainer. The Fed cannot afford to penalise the entire economy by punishing the irresponsible. Besides, a 1/2% cut will not bail out those who borrowed 100% at teaser rates and are now seeing their rates re-set to double.
The "Bernanke Put"? Not! However, the Fed also cut the discount rate by 1/2% to 5.25% in a bid to provide more liquidity to the market to facilitate roll overs of commercial papers.
Asian stocks and currencies surged in response to an aggressive Federal Reserve interest-rate cut, as the U.S. central bank moved to limit the risk of an economic downturn.
Market Indices
Australia All Ordinaries 6362.00 + 2.48%
Bombay Sensex* 16304.32* + 4.05%
Hong Kong Hang Seng 25554.64 + 3.98%
Japan Nikkei 16381.54 + 3.67%
Shanghai Composite 5395.26 - 0.55%
Singapore STI 3594.36 + 3.35%
South Korea Composite 1902.65 + 3.48%
Taiwan Weighted 8926.38 + 0.30%
* Intraday trading
The FOMC surprised everyone by cutting the Fed Funds rate by 1/2% instead of the widely expected 1/4%. The US market reacted by rising 335. HK opened up 900 and at one stage was up over 1,000. The market closed at 25,555 up 977 on heavy turnover of HK$138.7 billion.
The Fed moved aggressively in the first rate cut in 4 years sending out a very strong signal that it will do what is necessary to stop the sub prime woes from spilling into the broader market. The issue is one of moral hazard. Should the Fed bail out those financially irresponsible who put us into this mess in the first place. At the end, it was a no brainer. The Fed cannot afford to penalise the entire economy by punishing the irresponsible. Besides, a 1/2% cut will not bail out those who borrowed 100% at teaser rates and are now seeing their rates re-set to double.
The "Bernanke Put"? Not! However, the Fed also cut the discount rate by 1/2% to 5.25% in a bid to provide more liquidity to the market to facilitate roll overs of commercial papers.
Asian stocks and currencies surged in response to an aggressive Federal Reserve interest-rate cut, as the U.S. central bank moved to limit the risk of an economic downturn.
Market Indices
Australia All Ordinaries 6362.00 + 2.48%
Bombay Sensex* 16304.32* + 4.05%
Hong Kong Hang Seng 25554.64 + 3.98%
Japan Nikkei 16381.54 + 3.67%
Shanghai Composite 5395.26 - 0.55%
Singapore STI 3594.36 + 3.35%
South Korea Composite 1902.65 + 3.48%
Taiwan Weighted 8926.38 + 0.30%
* Intraday trading
Tuesday, September 18, 2007
Waiting for the Fed
In Hong Kong, property firms lost ground for a second day on profit-taking as we all waited with bated breath for the Fed meeting tonight (US time 18 September 2007). The expectation is that he will cut the Fed Funds rate by 1/4 percent. Some are hoping for a 1/2 percent cut.
I had just returned from a short visit to the US over the weekend. The man in the street does not appear too concerned about the economy which shows that the sub prime problems have only touched the edges so far. But! I was taking a stroll with my grandson one nioght and saw a "For Sale" sign outside a house on the development. It said, "New Price". This is a weak attempt to disguise "Reduced Further" that we see often in store sales. Homeowners are finding it more difficult to move their properties and can only mean that prices are coming DOWN.
The pain will be felt first by the builders and developers who have taken loans for the development. They will be forced to cut prices to liquidate their invnetory and repay loans. We are already seeing very generous incentives in the form of "upgrades" etc as they try to keep the top line prices from falling. The froth have gone out of the property market and everyone has adopted a "wait and see" attitude which is markedly different from the "buy before it's too late" mentality from the last 2 years. People are no longer camping out overnight to get in line to buy homes.
I went to my bank on Friday morning and was collared by a loans officer who offered me an equity loan on my house. No fees, no costs and a 1/2 percentage off the interest rate. On the surface, this appears to be business as usual. But this is in contrast to people lining up to take out 2nd mortgages to buy vacation homes, or investment properties. People are much more cautious and that can only mean that the adjustment has not yet run its course.
Market Indices
Australia All Ordinaries 6208.00 - 1.20%
Bombay Sensex* 15669.12* + 1.06%
Hong Kong Hang Seng 24576.85 - 0.09%
Japan Nikkei 15801.80 - 2.02%
Shanghai Composite 5425.20 + 0.07%
Singapore STI 3477.75 + 0.04%
South Korea Composite 1838.61 - 1.77%
Taiwan Weighted** 8899.91** - 1.46%
* Intraday trading
** As of Sept. 17. Markets were closed in Taiwan due to Typhoon Wipha.
I had just returned from a short visit to the US over the weekend. The man in the street does not appear too concerned about the economy which shows that the sub prime problems have only touched the edges so far. But! I was taking a stroll with my grandson one nioght and saw a "For Sale" sign outside a house on the development. It said, "New Price". This is a weak attempt to disguise "Reduced Further" that we see often in store sales. Homeowners are finding it more difficult to move their properties and can only mean that prices are coming DOWN.
The pain will be felt first by the builders and developers who have taken loans for the development. They will be forced to cut prices to liquidate their invnetory and repay loans. We are already seeing very generous incentives in the form of "upgrades" etc as they try to keep the top line prices from falling. The froth have gone out of the property market and everyone has adopted a "wait and see" attitude which is markedly different from the "buy before it's too late" mentality from the last 2 years. People are no longer camping out overnight to get in line to buy homes.
I went to my bank on Friday morning and was collared by a loans officer who offered me an equity loan on my house. No fees, no costs and a 1/2 percentage off the interest rate. On the surface, this appears to be business as usual. But this is in contrast to people lining up to take out 2nd mortgages to buy vacation homes, or investment properties. People are much more cautious and that can only mean that the adjustment has not yet run its course.
Market Indices
Australia All Ordinaries 6208.00 - 1.20%
Bombay Sensex* 15669.12* + 1.06%
Hong Kong Hang Seng 24576.85 - 0.09%
Japan Nikkei 15801.80 - 2.02%
Shanghai Composite 5425.20 + 0.07%
Singapore STI 3477.75 + 0.04%
South Korea Composite 1838.61 - 1.77%
Taiwan Weighted** 8899.91** - 1.46%
* Intraday trading
** As of Sept. 17. Markets were closed in Taiwan due to Typhoon Wipha.
Monday, September 17, 2007
HK retreated on Profit Taking
Asian shares closed mixed, with Hong Kong property firms dropping on profit-taking, while Shanghai reached another record close on strong gains from airlines and insurers.
Market Indices
Australia All Ordinaries 6283.70 - 0.51%
Bombay Sensex* 15504.43* - 0.64%
Hong Kong Hang Seng 24599.34 - 1.20%
Japan Nikkei** 16127.42** + 1.94%
Shanghai Composite 5421.39 + 2.06%
Singapore STI 3476.31 - 1.70%
South Korea Composite 1871.68 + 0.09%
Taiwan Weighted 8899.91 - 1.46%
* Intraday trading
** As of Sept. 14. Martkets were closed in Japan for a national holiday.
Market Indices
Australia All Ordinaries 6283.70 - 0.51%
Bombay Sensex* 15504.43* - 0.64%
Hong Kong Hang Seng 24599.34 - 1.20%
Japan Nikkei** 16127.42** + 1.94%
Shanghai Composite 5421.39 + 2.06%
Singapore STI 3476.31 - 1.70%
South Korea Composite 1871.68 + 0.09%
Taiwan Weighted 8899.91 - 1.46%
* Intraday trading
** As of Sept. 14. Martkets were closed in Japan for a national holiday.
Friday, September 14, 2007
Yet Another New High!
Asian markets rose Friday after U.S. stocks rallied, with Japanese indexes lifted by metals stocks and exporters. Hong Kong shares reached their third record close.
Market Indices
Australia All Ordinaries 6315.70 + 1.14%
Bombay Sensex* 15603.80 - 0.07%
Hong Kong Hang Seng 24898.11 + 1.47%
Japan Nikkei 16127.42 + 1.94%
Shanghai Composite 5312.18 + 0.07%
Singapore STI 3536.40 + 0.91%
South Korea Composite 1870.02 + 1.19%
Taiwan Weighted 9031.63 + 1.17%
*Intraday trading
Market Indices
Australia All Ordinaries 6315.70 + 1.14%
Bombay Sensex* 15603.80 - 0.07%
Hong Kong Hang Seng 24898.11 + 1.47%
Japan Nikkei 16127.42 + 1.94%
Shanghai Composite 5312.18 + 0.07%
Singapore STI 3536.40 + 0.91%
South Korea Composite 1870.02 + 1.19%
Taiwan Weighted 9031.63 + 1.17%
*Intraday trading
Thursday, September 13, 2007
Another New High for HK!
Asian shares closed higher, with expectations of lower interest rates to come property firms pushing Hong Kong's benchmark Hang Seng Index to a new record.
Market Indices
Hong Kong Hang Seng 24537.02 + 0.93%
Japan Nikkei 15821.19 + 0.15%
Shanghai Composite 5273.59 + 1.95%
Singapore STI 3504.40 - 0.05%
South Korea Composite 1848.02 + 1.90%
Taiwan Weighted 8927.42 - 1.01%
*Intraday trading
Market Indices
Hong Kong Hang Seng 24537.02 + 0.93%
Japan Nikkei 15821.19 + 0.15%
Shanghai Composite 5273.59 + 1.95%
Singapore STI 3504.40 - 0.05%
South Korea Composite 1848.02 + 1.90%
Taiwan Weighted 8927.42 - 1.01%
*Intraday trading
Wednesday, September 12, 2007
Hong Kong Hits a Record High ...Again!
The Hang Seng Index closed up 357 points or 1.49 per cent at a record 24,310, after reaching an intraday high of 24329. The total market capitalisation of Hong Kong stocks also exceeded $18 trillion for the first time yesterday at $18.148 trillion.
While some commentators are castigating the HK Government for intervening in the market by buying 5.88% of the HKEx, investors were looking for the next stock to benefit from government intervention. Attention seem to be focused on the listed Mass transit Railway (MTR) ahead of a crucial vote on the merger with the unlisted Kowloon and Canton Railway Corporation (KCRC). Another candidate is the Link REIT which is under pressure from hedge funds to raise rents on shopping centres used by low income housing residents.
Market Indices
Hong Kong Hang Seng 24310.14 + 1.49%
Japan Nikkei 15797.60 - 0.50%
Shanghai Composite 5172.62 + 1.15
Singapore STI 3506.09 + 0.33%
South Korea Composite 1813.52 - 1.83%
Taiwan Weighted 9018.12 + 0.17%
*Intraday trading
While some commentators are castigating the HK Government for intervening in the market by buying 5.88% of the HKEx, investors were looking for the next stock to benefit from government intervention. Attention seem to be focused on the listed Mass transit Railway (MTR) ahead of a crucial vote on the merger with the unlisted Kowloon and Canton Railway Corporation (KCRC). Another candidate is the Link REIT which is under pressure from hedge funds to raise rents on shopping centres used by low income housing residents.
Market Indices
Hong Kong Hang Seng 24310.14 + 1.49%
Japan Nikkei 15797.60 - 0.50%
Shanghai Composite 5172.62 + 1.15
Singapore STI 3506.09 + 0.33%
South Korea Composite 1813.52 - 1.83%
Taiwan Weighted 9018.12 + 0.17%
*Intraday trading
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