WEEKLY MARKET REVIEW

( 26-11-2001 - 30-11-2001 )

MONDAY ( 26/11/2001 )

-    HK stock open higher as US consumer seem resilient - Christmas shopping season.

-    Shares of consumer goods and garment trading company Li and Fung rose buoyed by hopes. us consumer confidence is holding up.

-    Property developers were among top gainers, New World Development saw a strong response to  flat sales.

-    Hong Kong's key share index ended the monday morning session flat as profit-taking was offset by gains in property stocks.

-    Property developer Cheung Kong ( Holdings ) up by 1.6%, Sun Hung Kai Properties and New World Development were up 1.72% and 1.46% respectively.

-    Micro-Motor makes Johnson Electric slipped 0.57%, China Mobile drop 1.09%.

-    Pacific Cyber Work fell by 3.16% on reports that it plans to buy some asset from debt-laden telecom operator level 3 Communications Inc.

-    Hong Kong blue chips ended at a three-month high on monday.

-    Profit-taking eroded gains in the morning trade but property stocks kept the index in positive territory by the close.

-    The Hang Seng property sub-index outperform other blue chips with a rise of 1.9%

TUESDAY ( 27/11/2001 )

-    Hong Kong stocks edged slightly higher in early trade - investors appeared to be switching away from blue chip heavyweights which have risen sharply in the past weeks to laggards like property investor Hysan Development which rose 1.4% and Swire Pacific which was 0.54% higher.

-    Investors are cautious as the short term economic outlook in Hong Kong is grim.

-    Hong Kong stocks were little change - profit taking and the market met stiff resistance at 11,600.

-    Hong Kong exports dropped 13.9% in October, the biggest monthly decline in 3 years.

-    Local investors will be eagerly scrutinising US consumer confidence data, due later tuesday for further clues on the direction of the US economy.

-    Investors taking profits on stocks that have risen particularly sharply recently such as Cathay Pacific Airways and property developer Cheung Kong ( Holdings ) Ltd.

-    Cathay Pacific fell 2.73% and Cheung Kong was down 0.94%, China Mobile down by 0.18% and Hutchinson Whampoa off 0.68%.

-    Investors grew nervous about how far the market can climb and limited their buying to market laggards or switched to defensive utilities.  The Hong Kong market index which climbed to a three-month high on monday ended the session down by 0.20%

-    There is a lot of uncertainty in the market over the next few days with the future expiry and changes to the MSCI indices so investors want to lock profit.

-    The November futures contract expires on Thursday while the first phase of Morgan Stanley Capital International's rebalancing of its indices to reflects companies free float of the stock market takes effects after friday's close.

-    Cheung Kong ( Holdings ) Ltd. dipped 0.94%, Pacific Century Cyber works was up by 1.09%.

-    Investors locked in profits on key blue chips on news that South and North Korean border guards had briefly exchanged fire across the world's most heavily armed frontier.

-    The Hong Kong market index fell by 1.14%

-Hutchinson fell 1.02%, Hang Seng Bank dipped 0.31% while Johnson Electric Holdings fell 3.33%.

-    Sun Hung Kai fell 3.77% while Henderson Land was off  3.23%

WEDNESDAY ( 28/11/2001 )

-    Hong Kong stocks opened lower as a drop in US consumer confidence for the fifth straight month

-    Among top percentage blue chip losers were micro-motor maker Johnson Electric and garment trader Li and Fung, both of which depend heavily on the United States for exports.

-    Johnson Electric was down 3.45% while Li and Fung lost 3.66%.

-    Hutchinson Whampoa fell 1.38% tracking a 1.3% slide in Vadatone, the world's largest cellular operator. ( Hutchinson owns a 2.9% stake in Vadatone and derives about nine percent of its revenues from Europe ).

-The biggest blue chip percentage fall in early trade was China Resources Enterprise, sliding 4.14%.

-    The Hong Kong Market Index ended the morning session down 1.03%.

-    The Hong Kong Market Index were sharply lower and was down by 2.11% in afternoon trade,  following the unexpected drop in US consumer confidence and a near three percent drop in Tokyo Nikkei average added to the selling pleasure.

THURSDAY ( 29/11/2001 )

-    Hong Kong stocks opened lower on broad-based selling, tracking Wall Street which fell on news that US energy gaint Enron Corp is on the verge of collapse.

-    The Hong Kong Market Index broke below 11,200 and was down by 1.2%

-    Top percentage losers include Cheung Kong ( Holdings ) Ltd., Hutchinson Whampoa, Li and Fung and Johnson Electric Holdings.

-    HSBC was down 0.8% as Enron's woes raised fear about the global banks' exposure to bad debt.

_    Hong Kong stocks ended slightly lower at midday, but expiry of the November futures contract and buying of defensive stocks offset selling on further bad news about the US economy.

-    On fundamentals basis the Hong Kong market should be trading at 11,000.

-    The Hong Kong goverment is expected to announce on friday negative gross domestic product growth for the third quarter and forecast negative growth for the fourth quarter.

-    Some investors in morning trade were switching out of blue chips such as Li and Fung and Computer maker Legend Holdings.  Li and Fung dived 6.67% while legend lost 5.76%.

-    Wharf Holdings rose 2.19% while Swire Pacific climbed 2.43%

-    Rebalancing of Morgan Stanley Capital International Indices after friday's close also created volatility, promoting profit-taking on stocks that have surged in the run-up to the re-weighting.

-    Hong Kong stocks recovers early losses to end slight higher as investors gave way to bargain hunting in the afternoon.  The Hong Kong Market Index was up 0.22%

-    In the afternoon, investors were speculating that continued economic weakness would prompt another interest rate cut next month and duly scooped up bank and property stocks.

-    Hang Seng Bank rising 2.73% and Sun Hung Kai climbled 3.15%.

FRIDAY ( 30/11/2001 )

-    Hong Kong opened higher after a record jump in US Consumer Goods Orders in October.

-    Early winners included Cheung Kong (Holdings) Ltd which was up 1.03%.

-    Hong Kong stocks rose sharply in mid-morning and was up by 2.27%.

-    All blue chips were up but three packed heafty gains - Li and Fung, ( 4.71% ), Johnson Electric (4.09%) Cathay Pacific (5.14%).

-    The Hong Kong Market Index rallied on the 12.8% jump in US Durable Goods Orders in October.

-    The Hong Kong Market Index ended higher and was up by 1.7%.

-    Cheung Kong (Holdings) Ltd gained 3.78%, China Mobile rose 2.2% while Henderson Land Development Climbed 2.96%.

-    The US Federal Reserve is expected to cut rates at a meeting on December 11 in a further bid to revive the economy.  Hong Kong banks tend to follow US rate moves because of the currency link to the US dollar.

-    The Hong Kong Government announced that third quarter Gross Domestic Product grew by an unexpected 0.4% from the previous quarter.

-    Third quarter GDP contracted 0.3% year on year but that was much better that forecasts for a 2.07% decline.

-    Li and Fung was up by 1.75%, Johnson Electric Holdings jumped 4.12% while Cathay Pacific Airways 6.86%.  Hang Seng share dipped 0.29%.