Hong Kong share prices are likely to trade firmer this week on a technical rebound after sharp falls this week, dealers said. They said surging oil prices, profit-taking from recent strong gains and a downgrade of local property giant Cheung Kong and telecom conglomerate Hutchison Whampoa had dragged on the market.
Oil prices reached its record closing price of 67.49 in the United States on Thursday in the wake of a drawdown in US gasoline reserves, and the situation has been exacerbated by concerns over storms in the Gulf of Mexico.
But the benchmark Hang Seng Index rebounded slightly later in the week.
For the week ending August 19 dropped 55.72 points, or 0.40 percent to close on Friday at 14,982.89.
Dealers said the worst might be over as the market is expected to stabilise in this week.
"I think investors are used to the current oil level now, so they shouldn't impact the market so much although it will remain a concern," said Herbert Lau, chief investment officer of CASH asset management at Celestial Asia.
Despite the market fall, Lau said foreign funds remained in the territory which provided support for the market.
"The market has fallen so much but the funds are still here, so that's a plus. That means the game is not over yet," he added.
He said investors will focus on the outcome of further results this week. A key speech by US Federal Reserve chairman Alan Greenspan later Friday is likely to set the tone for market direction.
Lau expects the HSI index to trade between a support level of 15,200 and 15,300 points.
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