Investment Daily Note

Dow hit new high; NASDAQ back above 5,000 pts .

Although US’s February manufacturing activity grew at the slowest pace in 13 months, personal saving rate increased from 5% to 5.5%, lifting the Dow to another new high. Dow closed at 18,289, up 156 points. S&P 500 closed at 2,117, up 13 points. NASDAQ closed at 5,008, up 45 points. ADRs fell in the US market, with their closing prices effectively putting HSI down 17 points, closing at 24,870. Oil prices remained volatile and failed to hold above the US$50/bbl mark. New York crude oil futures closed at US$49.59/bbl, down US$0.17. New York gold futures settled at US$1,208.2/oz, off US$4.9.

China cut rates, Hong Kong stocks remained capped by resistance .

Rates reduction in Mainland sent the Hang Seng Index higher by 173 points at market open. The Index eased off by 108 points at most to a plight at 24,715 points, closing at 24,887, up 64 points. The HSCEI settled at 12,213, up 27 points. The market turnover was HK$79.7bn. Chinese financials only posted some modest gains in response to the rates cut. Ping An (2318.HK, HK$86.35), Bank of China (3988.HK, HK$4.49) and ICBC (1398.HK, HK$5.68) added less than 1%. China’s Ministry of Industry and Information Technology finally granted LTE-FDD operation permits. But China Unicom (762.HK, HK$12.66) was unimpressed, off 3.06% to become the top loser among blue chips. China Telecom (728.HK, HK$5.04) inched 0.39% higher. The National Development and Reform Commission’s lowering on natural gas prices could facilitate the switching of coal-to-gas power generation. China Gas Hold (384.HK, HK$13.16) and ENN Energy (2688.HK, HK$44.60) gained 9.12% and 8.38% respectively. NCI (1336.HK, HK$43.20) terminated the introduction of an Internet-based investor, off 3.24% after trading resumed.