Hong Kong shares seen rangebound amid New Year holiday

02 Jan, 2006

Hong Kong share prices are likely to trade in a narrow range in the coming holiday-shortened week as most investors mark time during the New Year holiday season, dealers said.
"The market should still be quite quiet because of the holiday mood," DBS Vickers Director Peter Lai said, adding that investors need a catalyst to build up momentum for the new year.
The market will want to see what the release Tuesday of the minutes of US Federal Reserve's policy-setting Federal Open Market Committee (FOMC) meeting earlier this month shows for the outlook on interest rates.
At the same time, there will be a series of fresh economic data from the United States, including the key employment report due Friday.
"This will undoubtedly affect the performance of the Dow as well as the performance of the does not believe high oil prices, which rose back above 60 dollars a barrel, will impact the market.
"Oil will not affect the market that much because oil prices (were boosted) by speculative factors ... I don't believe oil prices will rise again," he added.
For the week ending December 30, the Hang Seng Index lost 307.15 points or 2.0 percent at 14,876.43 points.
The markets will be closed on Monday for new year holiday and reopen on Tuesday.
Lai believes the main index will trade between 14,650 and 15,250 points this week.

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