Grazing on good fortunes in the Year of the Ram

Auspicious days are predicted for metals, while luck could flow from mainland to Hong Kong

A peaceful and harmonious ram has arrived and it could bring something of a hidden fortune, say feng shui masters.

On Feb 19, celebrations welcomed the Year of the Ram. This Lunar New Year is particularly auspicious for investors as it is linked with wood, one of the five elements of Chinese astrology - the other four being metal, water, fire and earth.

"When combined with wood, the Ram seeks peace and harmony," says Marco Yau, a research associate at CLSA, a Hong Kong-based equity brokers and investment group. "We don't think any particular sectors will do too bad this year."

CLSA has produced a Feng Shui Index every year for the past 21 years. While the brokerage says the index is somewhat tongue-in-cheek, it has often - but not always - matched the actual performance of various markets, including stocks and real estate.

The idea of using feng shui to analyze the elements and their impact is deeply rooted in Chinese culture. The aim of feng shui is to balance natural energy.

"We believe that if you put your money in the Hang Seng now, it is probable you will have some quite handsome returns by the mid-year," says Yau.

But this ram is unlikely to bring returns as high as it has in the past, he adds. "The earth (element) could restrain the power of this year, but metal and fire will flourish."

CLSA predicts that this lunar year is unlikely to be a spectacular year for the Hang Seng Index, but it should not be a bad one either.

The prediction is for the index to climb and reach its peak in July, but to start coming down around September, only to stay generally flat through the rest of the year.

When all is said and done, however, the alignment of the various elements suggests that the Hang Seng Index will end the year a little ahead.

The best-performing sectors are expected to be those related to the metal elements, including hotels, jewelry, gold and silver as well as automotive and electronics.

At the same time, property related to the Chinese mainland, as well as renewable energy and commodities, look good, thanks to a tendency toward what Yau refers to as "cashmere", the high-end wool known for its luscious softness.

But for investors following the Feng Shui Index, there are a number of sectors to be careful of - those associated with the fire element. These include industries such as oil and gas, gaming and technology.

Other sectors related to the fire element to watch out for, Yao says, are utilities, telecommunications and finance. All of these could underperform based on his reading of how the elements are positioned.