Hong Kong share prices will fluctuate wildly as the market continues to be driven by news and sentiment, dealers said. For the week ending November 21, the benchmark Hang Seng Index was down 6.5 percent, or 883.46 points, at 12,659.20.
Peter Lai, analyst at DBS Vickers, said the performance of the index next week would highly depend on whether speculation that Beijing was to unveil another economic stimulus package would materialise. The rumour resulted in a rebound on the local stock market on Friday, following four consecutive sessions of losses.
The market will also be boosted by the Hong Kong Monetary Authority's announcement Friday that China's central bank has agreed to provide liquidity to mainland units of Hong Kong banks when necessary.
Investors would also follow closely the performance of the Dow Jones Industrial Average and A-shares in China, he said. "The market is lacking direction. It will continue to fluctuate widely and wildly since it will be news and sentiment-driven," he said.
Lai expected the index to trade within the range of 11,000 to 11,500 points. But the analyst said it would be a good time for long-term investors to buy infrastructure, agriculture and retailer stocks, as China is strengthening its domestic consumption market.
"I believe agriculture stocks will be a very good choice since it is one of the areas the Chinese government has put a lot of effort in to boost domestic consumption," he said.