Hong Kong shares are likely to trade lower as the market consolidates following recent strong gains but will try to break record highs again after a brief respite, dealers said.
They said the strong interests in China-related stocks are keeping the funds in the market as investors are bullish about the economic outlook in China. The ample liquidity will continue to underpin the market.
"We still have sufficient funds here and there is no sign that they will leave soon," Conita Hung, head of research at Delta Asia Financial Group, said.
"As the Tokyo bourse isn't doing so well, I can see more money is coming to this direction," she said, predicting some profit-taking earlier in the week before the market goes up again.
For the week to November 24, the index rose 13.19 points or 0.07 percent to close at 19,260.30. Hung said the benchmark index could trade at a support level of 19,000 points and test the 19,400 point mark this week.
However, dealers said trade could be volatile with special focus on interest rate-related data from the US. Investors will watch the performance on the Wall Street after investors comes back from Thanksgiving holiday.
Locally, investors will also be watching the government auction of two residential sites on Tuesday and the expiry of the futures contract the following day.
Kitty Chan, director of Celestial Asia Securities Holdings, said expected strong results from the land auction will provide investors an excuse to add more property stocks.
Key US economic data expected this week include existing home sales for October, consumer confidence for November and gross domestic product for the third quarter.
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