Hong Kong share prices are expected to trade lower on profit-taking this week after Friday's sharp gains before turning higher later, dealers say.

Prospects that the US central bank will soon end its two-year cycle of interest rate increases will continue to boost sentiment after recent volatile trade on worries it would raise rates much further to dampen inflation.

Last week the Hang Seng Index rose 458 points or 2.9 per cent to 16,267. DBS Vickers sales director Peter Lai said: 'The market may see some profit-taking but the long-term outlook remains positive.'