HONG KONG stocks are expected to remain range-bound this week with renewed interest in red chips following the sale of China Telecom shares, Hong Kong's largest flotation, last week, analysts say.
'The market seems still to be lacking momentum though it has found good support at about 13,300 [points on the Hang Seng Index],' Mansion House Research manager Stanley Ng said. He expected the index to stay in a trading range of between 13,000 and 13,800 points in the short term.
The blue-chip index closed 33.75 points, or 0.25 per cent, higher at 13,601.01 on Friday, with the focus on red chips and H shares.
Over the week, the index lost 672.11 points, or 4.71 per cent.
On Wednesday, a wave of heavy selling wiped 452.32 points off the index, erasing the remainder of the year's gains.
