Investment Daily Note

Market Highlights

Global equities continued to slide, and 10-year US Treasuries yield fell below 2%. Crude oil also kept sliding with WTI Feb going below US$27/bbl. Investor sentiment still tilted to the negative; Hang Seng Index could still test 18,600 later, we therefore advise investors to keep patient and wait for a clear bottom to appear.

Kunlun Energy (135.HK)issued profit warning, citing factors like significant oil price drop and foreign exchange loss, which led to substantial decrease in profit attributable to equity-holders. We expect Kunlun to keep testing lower levels for support.