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Market review: September 21, 2016

Fang submitted 2016-09-21 01:14:03

Market review:

China stocks rebounded after a volatile trading day with SHA climbed about 0.1%.Investors generally are pricing no-hike from Fed and buy into shares which are relatively cheaper than those of one month ago.


Research Notes:

Money flowed into Superconductive Material, Water Conservancy and Environment Conservation sectors. Shanghai Wondertek Software Co(603189.sh), a telecommunication software producer, rallied to limit-up as money rushed into this newly-listed company.

DXY went through a choppy trading and stayed around 96 as BOJ released the policy for September with some unexpected policy tweak to weaken yen. CNYUSD fell to 6.67 yet inter-bank market in mainland and Hongkong showed no much relief of rmb liquidity for the short term.In commodity market, coke, manganese alloy and palm oil led the rally for another day as the supply side tightened. For we considered that the shock from FOMC, if any, would generally stay in short term, investor can position for some theme for Q4, including high tech material, SZ-HK link and gov supported PPP sectors, with our mid term target 3100 for SHA. Both index futures and etf options can also be included to enhance alpha in the recent trade of low volatility.


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