Hong Kong share prices are likely to continue higher this week, boosted by positive sentiment after a strong debut for the government's Link real estate investment trust (REIT) and a sharp pick up in economic growth, dealers said.
A year after a legal challenge delayed its flotation, the 2.5 billion US dollar Link REIT, the world's largest property trust sale, closed at 11.80 Hong Kong dollars (1.51 US), nearly 15 percent above its initial public offer (IPO) price of 10.30 dollars.
This, combined with 8.2 percent growth in the third quarter and an upward revision of the 2005 forecast to 7.0 percent from 4.5-5.5 percent announced by the government Friday, should be enough to boost sentiment this week.
Dealers said there are also hopes that the cycle of interest rate hikes will end early in 2006 but investors will closely watch a raft of key economic data coming out from the United States for their next lead on rate movements.
"Investors will be looking at the US performance which will be a major indicator as to how interest rates will move," said Conita Hung, head of research at Delta Asia Financial Group.
The US will release new homes sales figures for October, consumer confidence and unemployment rate for November, and third-quarter gross domestic product figures this week.
For the week ending November 25 the Hang Seng Index rose 198.15 points or 1.33 percent to 14,883.32.