◆ Market falls on ‘fiscal cliff’

◆ Mainland property outperforms market

Abstract of last issue “Smart investors should im-mediately switch his posi-tion to leading industry groups such as Mainland property.”

Then….. Although market slides on the worry of US fiscal cliff, Mainland property sector is immune from that due to strong fundamentals. The price of real estate in Mainland has risen for seven months in a row. Evergrande (03333), one of the largest property developers, rises over 6 percents. Yuexiu property (00123), the state-owned firm, is immune from the current market consoli-dation and keeps breaking new highs.

MARKET RECAP

The market is finally

cooled down by the US fiscal cliff, the conundrum that the U.S. government will face at the end of 2012, when the terms of the Budget Control Act of 2011 were scheduled to go into effect. DJIA, the major index, slides 2%. Ow-ing to the weak performance of western stock market, the atmosphere changes to negative. The up/down ratio drops from 60:40 last week, to 39:61 this week. It shows

that individual stocks con-solidate in phase with the two major indexes.

What now?

HSCEI slides in phase with HSI

Hang Seng Index starts consolidation

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Borizon

Market Update This article is intended for students interested in the stock market. With 10 years of trading experience, our writer is an investor. He is currently managing 600k of equity.

“Our market timing model for both HSI and HSCEI still shows an ‘Uptrend’ signal. However, the quality of the current uptrend is deterio-rating. To balance between risk and award, investors should stop accumulating positions and clear weak

performers.”

Joseph Lau

11th November 2012

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Market Update

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THE WINNING INDUSTRY

Benefiting from the growth of in-terim earnings, the food industry has been performing well for over 3 months. Want Want (00151), Tingyi (00322) and Uni-president (00220) rose 10%, 15% and 38% respectively in the past three months.

Among the three famous brands, Uni-president is the potential winner. Its strong performance is attributed to the better-than-expected interim earnings. Its net earning surges 190%, making it outperform the other two compa-nies. Technically, it broke out from a ‘Cup with handle’ pattern. Its current trend is leading the market and the chart pattern is the best among the industry. It is one of the common defensive stocks. Its steady trend and low volatility are suitable for risk-adverse investors.

Borizon Ranking

Uni-president (00220):

Tingyi (00322):

Want Want (00151):

Uni-president (00220) keeps strong in downtrend

Tingyi (00322) keeps its consolidation

11th Nov 2012