Hong Kong stocks yesterday staged a modest rebound after five days of selling as punters chased HSBC following a rally in London banking stocks on Monday. Brokers said many investors were hoping the banking giant and its subsidiary Hang Seng Bank would post respectable earnings growth when they reported final results next week. Turnover slumped to its lowest level this month as most investors preferred to sit on the sidelines amid increasing signs of regional instability. Turnover fell to $6.23 billion - the slowest trading day since the Lunar New Year break. The Hang Seng Index closed 108 points higher at 10,232.03. The rebound came after the index had slipped 749.12 points in the previous five trading days. Dharmala Securities research director Ben Kwong Man-bun said: 'The index had fallen almost 1,000 points in a week - that is bound to cause some technical rebound. 'HSBC benefited from the strong rise in banking stocks in London where there was some speculation about possible banking mergers.' Brokers said investors were also becoming more optimistic that the final results of HSBC, due on Monday, would be ahead of expectations. Nava SC Securities banking analyst Roland Bruce said: 'Investors think the results of HSBC and Hang Seng Bank should both be fairly strong. These stocks do have a lot of variability however, so you can see these movements either way.' HSBC posted the strongest percentage gain among blue chips, rising 3.4 per cent to $194.50, while Hang Seng Bank slipped 1.1 per cent to $64.50. Brokers said trading elsewhere was shallow due to uncertainty about the situation in Indonesia, today's Budget speech, and the possibility of a worsening of the Persian Gulf situation. Property stocks headed lower after Sino Land said on Monday it would sell its Majestic Park development in Ho Man Tin for less than its construction cost in an effort to generate buyer interest. Hang Lung Development fell 3.7 per cent to $10.40, Sino Land slid 2.5 per cent to $2.925, and Great Eagle slipped 2.4 per cent to $10. Elsewhere, Hopewell rose despite confirmation Standard & Poor's had lowered the company's credit rating from BBB- to BB. Hopewell added 1.2 per cent to $1.61. Brokers said the market had already factored in the rating decline. Looking ahead, brokers said they saw little upside for the time being due to the continued regional woes.