Hong Kong shares are likely to remain volatile, as uncertainty continues to grip investors over a whole range of issues, dealers said. For the week ended July 4, the Hang Seng Index closed down 2.8 percent or 619 points at 21,423.82. It has fallen more than 20 percent since the start of the year.
And dealers do not expect any respite from the grim picture, although some brave bargain-hunters may dive in.
"We have had a pretty big tumble and it is still a very day-to-day market, and a bit unpredictable," Howard Gorges, vice chairman of South China Securities, told AFP. "The uncertainty is on several different fronts. If it isn't oil, it is US data or it can be market behaviour in China or Wall Street.
"But prices have fallen, so they have attracted a bit of buying interest, and we may see a bit more next week, but the atmosphere across the world is pretty pessimistic." The US markets were closed Friday for a public holiday, meaning the Hang Seng will rely on other leads when it opens Monday.
But Gorges said there were not many investment alternatives, and investors were just holding on to their money.
"It is more a running for cover atmosphere and people just wanting to be able to sleep soundly at night," he said. However, he did see some hope in the long term if commodity prices start to dip.
"We are beginning to see some of these prices looking like they may be topping out, which might mean inflation fears could subdue."
Comments
Comments are closed.