Hong Kong stocks are at the top of their range and vulnerable to bad news, analysts say. ING Barings sales director James Osborn said: 'All we are doing is quickly going from the low end of the range to the top end. To argue that we are heading to new highs is premature.' The Hang Seng Index closed above the 13,000-point level yesterday for the first time since early March. Analysts placed the index's current range at 12,800-13,200. With little positive news at home, Hong Kong remains dependent on Wall Street for inspiration. Wage figures released this week showed that US inflation remains under wraps, despite stronger than expected gross domestic growth figures. US employment numbers, to be announced later tonight, will give a clearer picture of whether interest rates will have to be increased later this month. Dharmala Securities research director Ben Kwong said: 'If the data is not favourable, it will be a good opportunity to take profits.' Property stocks have been the largest contributor to the recent rally, rebounding from a correction that saw some developers fall more than 30 per cent. Owing to their interest-rate sensitivity, property counters would be the first to fall in case of bad news, analysts said. Mr Kwong said he believed a recent resurgence in the number of covered call warrants issued could increase the severity of a downward correction. Nava SC Securities director John Schofield said the Hang Seng Index had recovered more than 50 per cent of the losses sustained in the recent downturn, indicating that the correction was technically over. However, he is not convinced the index is ready for a sustained rally until it breaks through 13,200 points. Before it gets to that level, the index will have to overcome its 100-day moving average, while core constituent HSBC Holdings will need to test the $200 level. HSBC closed lower yesterday after reaching a record high of $196 on Wednesday. Mr Schofield said he was also concerned the Hong Kong market had become too complacent about a possible rise in interest rates and the condition of the property market. 'Problems that were problems are not problems any more. I'm a little bit suspicious.'