Hong Kong stock prices will continue to fluctuate wildly next week over uncertainties on the extent and duration of the global financial crisis, dealers said. For the week ending September 19, the Hang Seng Index dropped 0.13 percent to 19,327.73, despite trading in an extremely wide 3,044-point range this week.
The benchmark index plunged to below the 17,000 mark on Thursday, as the global financial crisis deepened after the collapse of Lehman Brothers and reports of more trouble at other US banks.
The local market rallied Friday after US authorities announced plans to help banks cope with bad debts that have rattled world markets. Analysts said whether the rescue bids are sufficient to ensure a stable market in the long term remains to be seen. Peter Lai, a director with DBS Vickers Securities, said: "The market will continue to fluctuate widely and wildly next week, as it will depend on the development of the US financial institutions and job figures." Lai expected the trading range to fall between 16,000 and 21,000 points.
"We saw some of the world's largest companies gaining close to 20 percent today and the Hang Seng Index has climbed more than 15 percent from yesterday's low," said Howard Gorges, vice chairman with South China Brokerages. "But this is not a short-lived rally for China. And what is good for China is good for Hong Kong even though we are not out of the woods on the global economic situation or financial market troubles."
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