Hong Kong share prices will fluctuate wildly next week as the market continues to be driven by news and sentiment, dealers said. For the week ending November 28, the benchmark Hang Seng Index was up 9.7 percent, or 1,229,04 points, to 13,888.24 Peter Lai, analyst at DBS Vickers, said it remains uncertain whether the gains can be sustained next week.
But he believed that profit-taking will likely take place at the end of next week.
The analyst said the index will track the Dow Jones Industrial Average and Shanghai A-share index closely. But he said, the fall by 2.44 percent in the Shanghai A-share index at Friday's close showed Chinese investors had not yet regained their confidence despite massive rate cuts by the authorities.
Lai added that the index next week would heavily depend on the performance of US economic data due next week, including job figures, construction expenditure, and industry productivity statistics.
"Like last week, the market is lacking direction. It will continue to fluctuate wildly and will be news and sentiment-driven," he said.
Lai expected the index to trade within the range of 11,000 to 15,000 points. But the analyst said it would be a good time for long-term investors to buy infrastructure, agriculture and retailer stocks, as China is strengthening its domestic consumption market.
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