Propelled by a flood of overseas buy orders, Hong Kong stocks leapt to a record close yesterday, surpassing the previous high set in 1994.
A late surge in the final hour of trading sent the Hang Seng Index 143.81 points higher to 12,250.57. The index's previous high was 12,201.09, reached on January 4, 1994.
Despite the strong run, market watchers have drawn distinctions between the new record and the Hang Seng's breathless 1993 rally which was cut short by interest rate rises in early 1994. The consensus among analysts is that the index may climb another 1,000 points by the year's end, assuming there are no shocks on the interest rate front.
They believe US rates, which determine local rates, will stay unchanged until after the presidential election.
Meanwhile, Hong Kong stocks traded in London edged up last night, closing 18.71 points higher at 12,269.28.
