Hong Kong - Blood Bath, Support at 15,000 points

The Hong Kong Hang Seng Index (HSI) took another beating today amid heavy losses on the Dow Jones Industrial Average (-449 points or 4%) and the Shanghai Stock Exchange Composite Index (-112.6 points or 5.8% as at 11.53 am. The HSI drop sharply lower. As at 11.53 am, the HSI is at 16,293.40 points, down 1,343.80 points or 7.6%, making it the lowest in more than 2 years.


Monthly HSI chart as at 11.53am, 18 September 2008 using NextVIEW Advisor. Click on chart to view enlarged chart.

Investors were worried and seen dumping stocks on fear of credit woes in the US which might hit their shores soon, despite given assurance from some insurance brokers and banks. The support level for HSI is at 15,000 points, an ABC correction target, which is from the high in October 2007.

Commentary and Analysis by Benny Lee