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Borizon

Market Update ◆

Market will start its next big move

Shale gas concept rocks the market

This article is intended for students interested in the stock market. With 10 years of trading experience, our writer is an investor. He is currently managing 700k of equity.

Abstract of past issue

2

Hang Seng Index breaks new high

Owing to the growth of exploitation of Shale gas in China and the significant improvement on earnings, the oil and gas equipment industry becomes the winner in the current trend. It is expected that the uptrend will last for at least two quarters. 28-10-2012

Then….. Benefiting from the news of certain companies and the release of government policies, the whole ‘Shale gas’ sector skyrockets. Anton (03337), the company we strongly recommended a month ago, surges over 50%. SPT energy (01251) even doubled after its breakout. The stated-owned firms also perform well, COSL(02883) and CIMC (03899) keeps breaking new high and outperform the market.

MARKET RECAP

U

nder the expectation of

growth acceleration of Mainland economy, Hong Kong stock market rises and

HSCEI rebound on the current move of A share

breaks new high of current years. Better still, the strong rebound of Mainland market provides huge support for those China enterprises, pushing HSCEI up. The strength of HKD is also a good sign. The up/down ra-

tio turns optimistic, showing that most common stocks follow the uptrend of index and money inflow is benefiting the stock market. Leading sectors will be Mainland property, Shale gas and household appliance.


8 DEC 2012

What now? “Our market timing model for both HSI and HSCEI show a ‘Uptrend’ signal. The direction of the market is clearly uptrend. The probability of the continuation of current trend is about 70%. By considering the expected return and the potential drawdown, investors should immediately accumulate their position on leading sectors. Remember to set a cut loss price for every position.” Joseph Lau

100% 80%

60%

Down

40%

Up

20% 0%

SPT (01251) skyrockets after breakout

M

T

W

T

F

THE WINNING INDUSTRY As predicted a month ago, the Shale gas sector keeps their uptrend. The trend is still unstoppable due to consistent capital inflow such as the overweight of mutual funds. If you are a risktaker, you should build a position on those fast-growing companies since they are making historical high.

Anton (03337) leads the market

SPT energy (01251) and Anton (03337) are the potential ones. They breakout from a base in mid -October and began their unstoppable uptrend for two months. Selling pressure is low and they could immune from the placement. Investors are suggested buying these two stocks since the risk-award ratio looks good. Borizon Ranking COSL

(02883):

Anton

(03337):

Honghua (00196): Hilong

(01623):

SPT

(01251):

CIMC

(03899):

3

Market Updates 8-12-2012  

Shale gas concept rocks the market!

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