Daily market outlook commentary - 10 March 2014 (只提供英文版本)
While the weak ADR performances on Friday and the uninspiring CPI and PPI numbers came out yesterday may put pressure on HSI today, the missing MH370 probably posting the most serious threat to the market; as more and more evidence is pointing that this is related to a terrorist attack. There is some rumor relating the incident to the Kumming massacre and sentiment can go from bad to worse if, touch wood, there is another one coming. Very obvious that airline, airport, insurance and hotel related companies will under pressure; and names mentioned in the local presses such as China Southern (1055), Ping An (2318) and Beijing Airport (694) probably the hard hit ones. This uncertainty may also trigger some profit takings on those which have strong runs lately, including solar, shale gas, wind, EP, mobile handset, mobile betting and tech names. To some extent, LED lighting and nuclear equipment companies may hold up better as their runs have just started. NVC Lighting (2222), Neo Neon (1868), SH Electric (2727), Harbin Electric (1133) and Dongfang Electric (1072) the names under my radar screen. From the latest outstanding CBBCs distribution, the bull CBBCs are highly concentrated at levels between 22,000 to 22,400, which I think may be tested in near term.