Hong Kong shares will rally on Beijing's recent slew of sector-specific stimulus plans despite worries on negative corporate results and uncertainty in the US market, dealers said. For the week ending February 13, the benchmark Hang Seng Index dropped 0.74 percent, or 100.37 points, at 13,554.67.
Francis Lun, general manager of Fulbright Securities, said Hong Kong investors would focus more on a strengthening Chinese economy instead of the US market where financial woes were likely to deepen. "As the US economy sinks deeper into the black hole, China will rise and Hong Kong investors will increasingly look at the mainland bourse as the chief indicator," he told AFP.
China's benchmark Shanghai Composite Index has gained 16.6 percent since the beginning of this month. The index, which covers A and B shares, rose 3.23 percent or 72.70 points to 2,320.79 at Friday's close.
He added that market sentiment would continue to be buoyed with China expected to announce more economic stimulus measures. Lun expected the Hong Kong market to trade within the range of 13,500 and 14,000 points next week. But traders warned that gains may be short-lived. "The upcoming results of major blue chips are expected to be weak and this is likely to be another excuse for investors to sell stocks in the near term," Delta Asia Financial equity markets head Conita Hung told Dow Jones Newswires.
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