US stock market retreated on Tuesday which depressed Asian and HK stock market. Besides, A share also turned soft which further weaken HK stock. The Hang Seng Index spent most of the day below 250 Day SMA(20,802). However, late buying interest driven by future related activities, helped the local market to turn around with the Hang Seng Index rising 38 points to 20,857. H share index also added 41 points to 12,020. Market turnover further shrank to HK$56.5bn, reflecting cautious sentiment. Central government impose restriction for non-adult to engage in virtual money trading in secondary market with online game depressed. Tencent (0700.HK) dropped 0.9% to HK$125.90. On the other hand, China liansu(2128.HK) performed sluggish on its first day trading but still able to close at IPO price. Besides, China Science Technology(0985.HK) announced to place new share at huge discount last Friday while the new shares started to float on Wednesday. Its share price plunged 39.1%.

Europe and US stock markets dropped on Thursday, together with the weak performance of A-share market, Hang Seng Index opened 117 points lower on Friday and remained soft afterwards, loss was narrowed near market closing which finished the day at 20,690, fell 42 points. H-share index lost 70 points to 11,865. Market turnover was HK$51.5bn. As market worried the recovering pace of Europe and US economy, shipping and exports plays slid with Cosco Pacific (1199.HK) and Esprit (0330.HK) declining 3.6% and 2.6% respectively. Sasa (0178.HK) rose 2.2% as its annual profits for the year ended 31 Mar 10 surged 20.6% yoy to HK$381mn which hits high-end of market estimates.

Mzee @Kpoli,

First of all thanks for Ug stockbroker contact.

It is difficult to predict direction of US or European markets as there are many uncertainties.
Gulf of mexico oil spill by BP & CO, or the recent negative impact of Greek soverign debt on Europe and US markets were not forseen by numerous world class analysts.

Most often the impact is not very noticeable in frontier markets like Kenya, Nigeria etc.

My approach to foreign markets outside Africa is cautious speculation on commodoties (Gold and Oil).
In Hong Kong after positioning in real Gold mining HNK:246 at 11.03 HNK $ per share when gold price was 1100 USD, I exited at 13.98 (22 % up) when gold price reached 2009 high of USD 1,230.

I then entered Oil Sinopec HNK$ 5.88 when oil price slided to USD69 in mid May, Sinopec is currently trading at 6.51 HNK$ (11 % up) because oil price is currently 76 USD. I hope to exit Sinopec when Oil price hit 80 USD, and be awasre in April oil was as high as USD 86, so hitting USD is a realistic possibilty.

Man cannot live on oll and Gold stocks alone so I am currently researching on other commodity plays like

Silver
Platinum
Copper
Aluminium
Iron Ore
Steel
Soybean
Corn

and trying to identify the underlying blue chips
that responds to fluctuating respective commodity prices.

You are quite aware that I invest long term on blue chips in African markets.


Best Regards

HONG KONG (Dow Jones)--Hong Kong shares ended slightly lower Friday, tracking Wall Street's weakness as investors kept to the sidelines ahead of the Group of 20 summit over the weekend, although Tencent rose on bargain hunting.

The blue-chip Hang Seng Index fell 42.70 points, or 0.2%, to 20,690.79 after trading between 20,563.93 and 20,763.32 during the session. The index ended 2% higher over the past week.

Market volume rose to HK$51.46 billion, up from HK$47.79 billion Thursday.

The Hang Seng Index fell on renewed concerns over the sustainability of economic recovery in the U.S. stemming from uncertainty over the final shape of the financial-overhaul bill. The Dow Jones Industrial Average dropped 145.64, or 1.41%, to 10152.8 overnight Thursday.

Also, investors are adopting a wait-and-see approach before Agricultural Bank of China prices its mega-IPO next week.

'Trading sentiment is listless amid a lack of fresh market leads. Also, investors are staying on the sidelines ahead of the G-20 summit this weekend,' said Steven Leung, director of institutional sales at UOB KayHian.

The index will likely trade in a range of 20,500-21,000 next week, traders said.

China plays retreated as expectations of yuan appreciation, which drove the HSI's 3.1% rally Monday, subsided.

The H-share index ended down 0.6% at 11,865.17.

ICBC ended down 0.5% at HK$5.87, and Bank of China fell 0.5% to HK$4.06. Ping An fell 0.7% to HK$66.35 .

'Investors could seek buying opportunities in China banks on weakness, given their strong earnings outlook over the medium to long term,' said Mark To, head of research at Wing Fung Financial.

China property stocks fell on weakening home sales in the country as the effect of the government's austerity measures kicked in.

China Overseas fell 2.4% to HK$15.38. China Resources Land lost 2.9% to HK$15.14.

Tencent bucked the downtrend, rising 2.7% to HK$129.70 on bargain hunting. Tencent has fallen 15% in the month to Thursday, on worries about a slowdown in online games business. The Hang Seng Index rose 6% over the same period.

CLP also defied the downtrend and ended 1% higher at HK$56.90 on its defensive nature.

Mzee Pkoli,

Just to clarify be aware I am only mentioning HNK market because I am currently writing about Hong Kong.
Of course you are right, I also invest in commodities in Australia, Canada, South Africa and US market.
Be aware that China is one of the world biggest consumers of commodity and and I can only reach out to China through Hong Kong.