Hong Kong share prices are set to fluctuate wildly due to the lack of a clear direction in the market, a dealer said. For the week ending July 3, the benchmark Hang Seng Index closed at 18,203.40, down 2.1 percent, or 396.86 points, on the week.
Peter Lai, sales director of DBS Vickers, said that on one hand, job figures and other economic indicators in the US suggested that a recovery was not yet in sight. On the other hand, he said he did not expect China's A-shares to experience a major correction over the next few months because Beijing was set to "do all it can to boost the market" in the run-up to the country's 60th anniversary on October 1. "The indicators seem to pull investors to all directions. The economy remains uncertain and the market is expected to fluctuate wildly and widely," he said.
Lai said he expected the blue chip index to trade within the range of 17,400 and 18,800 next week. ICEA Securities strategist Ernie Hon said the market needed time to digest the profit-taking pressure that has been building up for months. "The index is entering into a consolidation phase in the third quarter but we still hold an optimistic view about the local stock market over the medium to long term," Hon told Dow Jones Newswires.
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