By Vikram S.Subhedar
HONG KONG, Jan 19 (Reuters) - Now playing: A rabbit in the tiger's shadow.
That is not the latest Hong Kong hard-boiled kung-fu flick but the theme for Hong Kong's stock market this year, CLSA Asia-Pacific Markets said its light-hearted annual outlook based on the ancient Chinese practice of feng shui
The year of the rabbit, according to the Chinese zodiac, will begin on February 3 when the year of the tiger comes to a close.
CLSA forecast that the new year will be rewarding for investors in Hong Kong-listed shares as long as they are willing to ride out the early volatilty.
"A reputedly placid, personable and prescient white rabbit will wrest the reins from the decidedly unpleasant and erratic tiger that's been tossing and turning the markets over the past 12 months," CLSA said in its colourful report.
Philip Chow, who in his usual day job as a CLSA analyst tracks east Asian shipping companies, donned the mantle of feng shui master for this year's outlook and forecast that conditions are going to be choppy in the near term.
"The rabbit will stay in its hole as the tiger prepares to leave," said Chow.
The second half gets easier as China finally manages to get inflation under control, he said.
Gaming stocks will do well as tourist flock to Macau. Gold will shine. And financials will break out of the funk they've been in through much of 2010.
Those forecasts, while meant to be taken with a pinch of salt, do gel well with CLSA's more serious, traditional forecast which calls for Hang Seng index <.HSI> rising to 29,000, more than 18 percent above current levels. (Editing by Kevin Plumberg) (vikram.subhedar@thomsonreuters.com; +852 2843 6975; Reuters Messaging: vikram.subhedar.reuters.com@reuters.net))