Wednesday, September 28, 2011

Asian Exchanges

Asian Exchanges: JP Morgan has sector report. Recommend Long HKEx with trailing stop, good for 10%. (Strictly a trade) Note that HKEx has reached 26.8x dynamic PE and vol also appear to be stabilizing, with 30 DMA turnover at HK$71b. Recommend investors to enter the trade with tight stop-loss as macro outlook is unclear and broader market volatility may lead to continuation of last 8 wks’weakness in the stock.

Note that SGX may be one of the bidders for LME and such an event will remain an overhang, also, vol trends are subdued and stock is at 28x dynamic PE. Bursa appears at value levels amongst the exchanges, stock trading 1SD below mean at 21.3x, most attractive from medium term view as the structural changes can lead to significantly higher velocity and vol.

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