THE euphoria which grabbed the market after last Wednesday's announcement of the resumption of Sino-British talks on Thursday is expected to abate this week. ''I think the market will continue to consolidate next week; not that there's been any real negative sentiment. But people are beginning to focus on the fact that talks are going to be difficult,'' said Mr Phillip Chan, senior research manager at PBI Securities. A less volatile market will be a reprieve from last week's frenetic activity when the Hang Seng Index surged to record levels. Shares soared on Wednesday after British and Chinese authorities announced on Tuesday evening that they would resume talks on the Hongkong's political future. The Hang Seng rose 371.53 points, or 5.3 per cent to a record high of 6,789.74 on Wednesday, outstripping its previous high of 6,508 points reached on March 9. Tuesday had been less exciting with the key index finishing just short of its intraday high of 6,418.40 points and sharply above a low of 6,285.67. But by Friday, the market had tempered, pushing down the Hang Seng Index 57.70 points to 6,732.04 on Thursday. Utilities stocks carried the weight of the drop with China Light, Hongkong Telecom, and Hongkong Electric all losing ground. British stocks fared better, particularly Jardine Matheson, which increased by 16 per cent over the last week, clawing back from its drop of earlier weeks. The week ended with the Hang Seng Index closing at 6,697.15. Forecasts for trading ranges this week varied. While most analysts suggested volume would continue to be healthy, trading-range forecasts varied. However, no one seemed to expect activity to match last week's. ''The euphoria we saw at the beginning of the week will likely be eaten away during the first few days of next week,'' said Mr Charles Whitworth, of Wardley James Capel. ''Any upward movement will meet some resistance at 6,800,'' he added, reluctant to give a bottom range. Senior analyst Mr Terry Ip of Sassoon Securities was more optimistic. ''Volume will be high, but volatility will slow down,'' he suggested, ''and the upside will still be more than the downside.'' He anticipates a range of 6,600 to 6,950. With regard to individual stocks, analysts were not expecting any great shakes as the reporting season for the major stocks has closed. An expectation that Hutchison will be seeking to raise cash in the future may bring with it some selling pressure, suggested one analyst, but he too pointed to a quieter time for individual stocks as attentions turns to the Sino-British talks.