Hong Kong share prices are set to go through a moderate rally as signs of a slow but gradual economic recovery help restore investor confidence, a dealer said. For the week ending June 26, the benchmark Hang Seng Index closed at 18,600.26, up 3.8 percent on the week.
"The worst times seem to have gone. The situation is not as terrible as expected, with improving economic indicators and a stronger property market," Francis Lun, general manager of Fulbright Securities, told AFP.
Lun said the market would also be supported by speculation that the Industrial and Commercial Bank of China was seeking to acquire Wing Hang Bank. The Hong Kong lender jumped 10.5 percent to 74.00 dollars on Friday, extending Thursday's 9 percent rise, although the bank said it was not involved in acquisition talks and was unaware of any reasons for the recent surge in its share price. Lun expected the index to trade within the range of 18,500-19,000.
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