Hang Seng Index Market Outlook 29-03-2010

The HSI has been moving sideway last week. With the open on Monday and the close on Friday at around 21000 to 21100 level. Which means it hasn't really moved at all.

3 Months Daily Chart
The HSI test support level at around 20500 and receive good support from that level. With HSI ending at the level of 7 and 30 days EMA. HSI is likely to continue its upward move on this coming week.

1 Year Weekly Chart
HSI has tested the support level provided by the 30 week EMA. With HSI staying above both 13 and 30 weeks EMA.

Overall, both short and long term I am still bullish. The market is having a bit of a correction after a bullish run. It is taking a break before it is going to move to a higher level.


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Hang Seng Index Market Outlook 20-03-2010

The Hang Seng Index had continued its upward move. Reaching a higher high compare to the previous week. Everything is going well in this current uptrend. The trend is slowly building its strength.

3 Months Daily Chart
The HSI is staying above the 7 and 30 day EMA. The market has been moving in a particular pattern which involved a big upward moved in one day then followed by few days of consolidation. As far as the current uptrend is concern, it was making higher peaks and troughs. Typical seen in an uptrend.

1 Year Weekly Chart
The HSI remained above the 13 and 30 week EMA. With the 13 week EMA started to slope upwards.

Overall both the current and long term trend are UP. The market is likely to test higher highs with the latest resistance on 22000 points.


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Hang Seng Index Market Outlook 14-03-2010

The HSI has continue to be strong last week, staying above 21000 point.

3 Months Daily Chart
The beginning of a short term uptrend is forming. 21500 points is a very likely to be reach in 1-2 weeks time. Continue to be bullish.

1 Year Weekly Chart
HSI has stay above both 13 and 30 week EMA. The direction of both EMA are going sideways. The market had continue to recover from the previous correction.

Overall I am bullish on both short and long term.

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Hang Seng Index Market Outlook 06-03-2010

Look like the HSI has continue to strengthen over the past week. It seems like the beginning of a short term up trend is going to form.

3 Months Daily Chart
On the 3 months chart, HSI has made a new high up to 21000 points and it has breakout from the resistance line at around 20500. All this is looking bullish. It has been forming a higher low and higher high. With the lowest trough at around 19500 then a higher trough at 20000. And I think 20500 will form a good support line for HSI. One more point to look at is HSI has also move above the 7 day and 30 day EMA.

1 Year Weekly Chart
The HSI has continue to form a nice base of around 20000. The HSI is resting nicely on the 13 and 30 week EMA.

In conclusion, in both short and long term, I am very bullish about the HSI with a short term target of around 22000.


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HSBC and Pacific Basin Company result analysis

It was a pretty good week for the HSI. It has gone up to 21000 points then come back to end at around 20700 points. To be honest I am quite disappointed with the result of HSBC and Pacific Basin. Especially to HSBC result. So before I go on with the market outlook, I will talk about the result analysis briefly. With HSBC (5), it shown a decline in Profit before tax of about 20% compare to year 2008. Despite this, the company had made a pretty good job in reducing its tax. Thus making it Profit after tax of $6.6 Billion which was a slight increase compare to year 2008. So it other words, you can say its net profit after tax is almost the same as the year before. But if you look at the EPS, you can see a decrease from 41 cents US to 34 cents US. It is mainly due to the share right issue, which cause a dilution effects on the EPS. For the year 2009, HSBC is pay DPS of 34 cents US. Which means it is giving out 100% of its profit to its owner/shareholder. And for Pacific Basin (2343), its shown a decline in profit of about 70%. Which is expected by most brokers because of the effect of economic crisis. I hope this is going to be the least profitable year for Pacific Basin and with the ongoing economic recovery, I am still very optimistic about the company future. With a DPS of 0.23 cents HK, considering my buy price of $5.35, I should be getting a dividend return of around 4.2% p.a. In conclusion, I will continue to hold on to these two companies.

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