Investment Daily Note

US stocks gained; Dow up 183 pts .

Three major US stock indices grew on the back of strengths on healthcare and technology sectors combined with improved consumer confidence. Dow closed at 18,024, up 183 points. S&P 500 closed at 2,108, up 22 points. NASDAQ closed at 5,005, up 63 points. ADRs fell in the US market, with their closing prices effectively putting HSI down 15 points, closing at 28,117. Oil prices retreated as Iraq marked a record high in crude export last month. New York crude oil futures closed at US$59.15/bbl, down US$0.48. Rise of US Dollar weighed gold prices lower. New York gold futures settled at US$1,174.50/oz, off US$7.90.

HSI lost over 400 pts at most on weak Mainland market .

Revision of margin financing ratio on certain A-shares by Chinese securities brokers put downward pressure on the Shanghai market. The Hang Seng Index tracked weakness, falling 111 points at market open last Thursday and widened losses by as much as 402 points to 27,997, last standing at 28,133, off 267 points. The HSCEI settled at 14,431, off 171 points. Market turnover was HK$170.8bn. Heavyweights Tencent (700.HK, HK$160.90) and China Mobile (941.HK, HK$110.70) dipped 2.0% and 2.6% respectively. Some Chinese banks posted slower earnings growth in first-quarter results, with Bank of China (3988.HK, HK$5.33) down 3.6% and ICBC (1398.HK, HK$6.74) down 1.9%. On improvement in Mainland property sales and hopes of looser monetary policy, China Res Land (1109.HK, HK$28.25) and Evergrande (3333.HK, HK$7.35) rallied 7.4% and 18.9% respectively. Cement operator BBMG (2009.HK, HK$9.62) also hiked 4.5%. New World Dev (17.HK, HK$10.30) formed a joint venture with Abu Dhabi Investment by means of injecting three Hong Kong hotels, which was expected to receive gain of HK$15.5bn and thereby unlock potential asset value of the company. Stock price finished 2.2% higher. AAC Tech (2018.HK, HK$41.15) fell 5.4% on reports it might lose some orders from Apple Inc.