Investment Daily Note

Market Highlights

Overseas markets did well last Friday. Oil prices rose, with WTI and Brent for March delivery both rising above US$32/bbl. Hong Kong equities may follow the overseas market to go up today, with initial resistance expected at around 19,400.

Li Keqiang, the Chinese Premier, during a meeting of State Council last Friday, confirmed further policies to help resolve excess capacity of steel and coal industries, which include slashing steel output by 100 million to 150 million metric tons, and substantially compressing coal output capacity. Coal and steel stocks may benefit from the latest news and keep rebounding.