Investment Daily Note

Market Highlights

Turkey shot down a Russian fighter jet yesterday, with its pilot landing being killed by militants in Syrian territories. Turkey insisted that Russian air force has trespassed Turkish airspace, while Russian President Vladimir Putin maintained that they did not and said the incident is like Russia being stabbed in the back by terrorist accomplices. With geopolitical atmosphere tense, that should boost the stock price of defence-related stocks like AviChina (2357.HK).

The merger proposal between Power Asset (6.HK)and Cheung Kong Infrastructure (1038.HK)has been voted down by minority shareholders. Though the proposal passed through EGM of CKI with over 99% voting yes, only 50.77% of Power Asset voting members agreed, falling short of the 75% majority needed,which made the deal fail to pass. Since the deal failure is somewhat expected by the market, impact of the news on share prices of both stocks should be limited.