Monday 22 September 2008

Comment on HSI by The Standard

The Hang Seng Index could breach 21,000 points by the end of the week if funds continue to flow back into the Hong Kong market, market watchers said.
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1 comment:

Guanyu said...

The Hang Seng Index could breach 21,000 points by the end of the week if funds continue to flow back into the Hong Kong market, market watchers said.

"The overall market sentiment continues to improve," said Sun Hung Kai Financial strategist Castor Pang Wai- sun. "It looks like the Hang Seng Index may continue to rebound this week."

The blue-chip index could rise to 20,000 points today to reflect stronger investor confidence after the US government's US$700 billion (HK$5.46 trillion) plan to buy up banks' bad assets, Pang said.

American depositary receipts of index heavyweight HSBC (0005) rose 2.8 percent in New York trading Friday to close at the equivalent of HK$127.18. China Mobile (0941) ADRs surged 6.4 percent to the equivalent of HK$85.52 on Friday.

"Whether the index can have the chance to go up further depends on the Chinese stock market," Pang said. The near-term peak for the Hong Kong market remains difficult to estimate, but the benchmark index could reach 21,000 points or higher for the week if funds flow back into Hong Kong equities and the mainland markets continue to go up, Pang said.

"Most of the investors have become more optimistic than before," Pang said. "In the short term, the market has the chance to overreact, which would help the index to go up."