Hong Kong stocks are likely to trade lower next week on a continuing technical correction and persistent concerns over interest rates, dealers said Friday.
They said it is still unclear when the interest rate cycle will reach its ceiling.
"It looks as if there is still more room for interest rate hikes. So the outlook is not so clear. This is capping the gains," said Andes Cheng, associate director at South China Securities. Rate-sensitive property stocks could be affected by the rate worries, he said.
However, Cheng believed China-related stocks will be able to buck the downward trend ahead of Chinese President Hu Jintao's visit to the United States in April.
"Investors would properly use this as an excuse to speculate that there could be another revaluation of the yuan," Cheng said.
For the week ending March 31, the Hang Seng Index gained 88.58 points, or 0.56 percent, to close trade Friday at 15,805.04.
Dealers expect the index to come down to a support level of 15,200-15,600 points next week.
Comments
Comments are closed.