Feng Shui In­dex pre­dicts flighty Year of Rooster

China Daily (Canada) - - VIEWS - By LUOWEITENG in Hong Kong sophia@chi­nadai­lyhk.com

In the com­ing Year of the Rooster, Hong Kong’s Hang Seng In­dex is des­tined for a flat start, be­fore track­ing up­ward to peak around July and Au­gust— and fi­nally end­ing on a pos­i­tive note amid year-end volatil­ity.

This is the pre­dic­tion from Hong Kong-based bro­ker­age and in­vest­ment com­pany CLSA’s 23rd Feng Shui In­dex.

The tongue-in-check re­port, first pub­lished back in 1992 in Lu­nar New Year cards for clients, uses the tra­di­tional method­ol­ogy of feng shui to chart the sea­sonal move­ments of Hong Kong’s bench­mark eq­uity in­dex.

Cherry Ma, a se­nior in­vest­ment an­a­lyst at CLSA, de­scribed roost­ers as “hum­ble, nim­ble, hard-work­ing and fast-mov­ing an­i­mals”, in­di­cat­ing that the im­por­tance of tim­ing can­not be over­es­ti­mated this year.

The pre­dic­tion said earth­re­lated in­dus­tries like real es­tate, re­sources and re­new­ables would flour­ish.

But it said dif­fer­ent sec­tors were set to gain sea­sonal mo­men­tum year.

In the se­cond quar­ter, the ba­ton would be seen pass­ing to wood-re­lated in­dus­tries like re­tail and health­care. CLSA pre­dicted that fire would flare up af­ter­wards, mak­ing tech­nol­ogy and util­i­ties pros­per.

“That ex­plains why tim­ing re­ally mat­ters for a nim­ble in­vestor,” Ma said.

CLSA se­nior re­search as­so­ciate Jef­frey Tong noted a big chance for the main­land’s A-share mar­kets far­ing bet­ter than their Hong Kong coun­ter­part, as north stands as the through­out the fa­vor­able di­rec­tion in 2017.

“Home­buy­ers are typ­i­cally ad­vised to go north this year,” he added.

De­spite the op­ti­mistic tone from the Feng Shui In­dex, many bro­ker­age firms and banks have taken a dim view of Hong Kong’s stock mar­ket.

HongHao, chief strate­gist at Bank of Com­mu­ni­ca­tions In­ter­na­tional Hold­ings Ltd in Hong Kong, said he be­lieved that tur­bu­lence in global cap­i­tal mar­kets would place sus­tained pres­sures on Hong Kong’s eq­uity mar­kets.

That ex­plains why tim­ing re­ally mat­ters for a nim­ble in­vestor.”

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