INDIVIDUAL investors should not rely on rumours in times of an unpredictable ''political market'', urges Hongkong Brokers' Association chairman Henry Wu King-cheong. ''In the last few days, many people rushed into and out of the market in response to rumours. Some of them have suffered losses as a result,'' he said. Dao Heng Securities head of research and marketing Mr Alex Tang Yee-yuk advised looking at company fundamentals. ''Counters with good fundamentals will be all right even when the market slumps,'' said Mr Tang. ''And don't concentrate on a few stocks. Diversification is the most important thing when the market is unstable,'' he cautioned. Options trading could spread risks, although it called for close monitoring of market performance, said Mr Tang. He suggested staying with blue chips, especially utilities due to their high resilience. Seapower Securities research manager Samuel Lau Kwok-leung suggested banking stocks, whose performance relied more on Hongkong's economy than political forces. ''Avoid covered warrants. They're even more volatile than shares,'' he advised. Mr Tang warned against investing in futures as they were particularly risky now. ''And don't stay with stocks which depend heavily on China's MFN [Most Favoured Nation] status. They often under-perform the market,'' he said.