Kospi May Rise; Trade Likely Volatile, Gains Capped The Kospi may rise, extending gains after Tuesday's 5.0% rise to 1735.71, on continued bargain hunting following the index's intraday slide to a 15-month low earlier this week and amid Wall Street's modest rise on Tuesday; initial resistance is tipped around the 1750-1760 region, analysts say. But they don't expect gains to be as steep as Tuesday's due to lingering European sovereign debt concerns particularly after a report highlighted a potential split in the euro zone over terms of Greece's second bailout. Woori Investment & Securities analyst Lee Kyoung-min believes the index may attempt to rise as high as 1770 or 1780 but that trade will remain volatile. The local currency may also cap stock gains should it continue to reflect Europe-driven global liquidity concerns, he adds. The USD/KRW was at 1,173.10 late Tuesday.
In Hong Kong, Short Sales Remain Heavy Despite Market Rally Yesterday. Hong Kong's short-selling volume fell 4.2% to HK$7.20 billion Tuesday, but as a percentage of the total market volume was higher at 10.1%, compared to Monday's 9.5%; this indicates bears were not deterred by the HSI's 4.2% rise--which marked the largest one-day percentage gain since May 27, 2009--and reflects a view that it was likely a bear-market rebound rather than the start of a fresh uptrend. China Mobile (0941.HK) grabbed the lion's share of short selling with HK$680.13 million, followed by China Construction Bank (0939.HK) with HK$383.50 million, and China Overseas Land (0688.HK) with HK$271.84 million. A50 China Tracker (2823.HK) and Agricultural Bank of China (1288.HK) rounded out the top five, with HK$246.04 million and HK$229.63 million respectively. Source: http://marketpin.blogspot.com/2011/09/kospi-may-rise-trade-likely-volati\ le.html <http://marketpin.blogspot.com/2011/09/kospi-may-rise-trade-likely-volat\ ile.html>
