Hong Kong share prices will remain sensitive to the twists and turns on Wall Street next week, but fragile confidence is starting to show signs of improvement, dealers said. For the week to April 18, the Hang Seng index closed at 24,197.78, losing 470 points or 1.9 percent, but seemed to avoid the worst tumbles of other markets.
"The market is still very much day to day, depending on what the news is in the United States," said Howard Gorges, vice chairman of South China Securities.
Gorges said the market will be sensitive to a stream of economic data and corporate announcements coming out of the United States and China. "But the market has been fairly resilient. I would rather be in Hong Kong than on Wall Street," he said. "There is money around. The alternatives are not looking great, although it depends on how much risk you are willing to take. China is still growing very fast.
"Market psychology keeps pushing (the bourse) down, but there are definitely some buyers around." Patrick Yiu, associate director at CASH Asset Management, said the market could rise next week if trading in Shanghai recovers from its recent travails.
"If foreign markets remain firm next week and the Shanghai bourse stops its decline and bounces back, our market may test the resistance level at 24,600 points," he said. "If it surpasses this level, the next resistance level will be at the 25,000 points level," he said.
Other dealers were less confident. "Some people can't wait to cash out. It is a sign that the market has reached its temporary peak," said Francis Lun, general manager at Fulbright Securities.
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