Index surfaces above 10,000
THE Hang Seng Index broke through the 10,000 level briefly yesterday and brokers say it could be on the verge of entering a new trading level.
Buoyed by the prospect of a further interest rate cut, the index extended its four-day rally to reach a high of 10,063.14, just six points off its year high set in October.
It drifted lower to close at 9,975.37, but was still 34.74 points up on the day.
Nial Gooding, head of sales at Kleinwort Benson Securities, said: 'I believe we are at the threshold of a new market level.
'But rather like jumping into cold water, there is reluctance on behalf of some of the market players.' He said the critical component still missing was a major inflow of funds from the United States.
Many brokerages are confident the index will finish the year between 10,500 and 11,000 points.