Hong Kong share prices will be volatile and news-driven next week, as investors look for clues from economic indicators and corporate results amid the worsening global economy, dealers said. For the week ending February 6, the benchmark Hang Seng Index climbed 2.8 percent, or 376.83 points, to 13,655.04.
Peter Lai, sales director at DBS Vickers, said he believed the market would rise early next week on hopes that China would release more measures to boost the economy.
"I think the market will open higher next week as Beijing continues to pour resources to support infrastructure projects and stimulate consumer spending," he told AFP. However, he expected the short rally to be followed by a period of profit taking. "It remains uncertain whether the market will rise or plunge for the rest of the week, as it all depends on US economic indicators and reports of corporate earnings," he said.
Lai said the market would likely trade within the 13,000 and 14,200-point range next week. He considered stocks related to Chinese infrastructure, agriculture, retail, and environmental protection to be good picks for the week.
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