The Hang Seng Index may fall as many as 800 points to 26,000 today, the 100-day moving average, following the slump on Wall Street on Friday due to worries the United States economy may be heading into a recession, experts say.
'The Hong Kong stock market downturn since last month is not yet complete,' said Ben Kwong Man-bun, the chief operating officer at KGI Securities.
'The Hang Seng Index may fall 500 to 600 points [today] and will not rebound significantly until the US government launches new measures to boost the economy at the end of this month or the Federal Reserve further cuts interest rates.
'Mainland stocks may also face pressure in the short term as investors still worry that Beijing will impose more tightening measures to rein in the overheated property and stock markets.'
Mr Kwong said the index would probably remain above 25,800 points, a level that had seen strong support in the past few months.
On Friday, the Dow Jones Industrial Average sank 1.92 per cent to 12,606.3 points while the Nasdaq Composite Index dropped 1.95 per cent to 2,439.94 points.