Hong Kong share prices may face lacklustre trade next week amid continuing worries about bird flu but losses would be capped by easing concerns about the outlook for interest rates, dealers said.
"Unless there is devastating news about the bird flu, there is a chance that the market would do better," said Conita Hung, head of research at Delta Asia Financial Group.
DBS Vickers Director Peter Lai said comments by Morgan Stanley and Sino Land that US interest rates will peak early next year has helped improve sentiment and rate-sensitive property stocks.
Morgan Stanley chief economist Stephen Roach said the benchmark US federal-funds target rate is expected to reach a peak of 4.5 percent before current Fed chairman Alan Greenspan retires at the end of January.
Sino Land chairman Robert Ng also forecast an end to the interest rate hike cycle soon.
For the week ending November 18 the Hang Seng Index gained 0.97 percent to finish up 142.72 points at 14,883.32.
Lai said investors would closely watch the release of the FOMC minutes next Tuesday which should signal the direction of interest rate movement.
Hung believed the index would test the 14,800-point level next week and could breach 15,000-point mark if property stocks continue to recover.
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