Hong Kong shares are expected to rise today after Friday's slump, but brokers warn of another round of profit-taking if the rebound is too vigorous. The Hang Seng Index dived 572.81 points, or 4.22 per cent, to 12,997.43 on Friday after United States Federal Reserve chairman Alan Greenspan sparked interest rate fears by warning of inflationary pressures. The comments initially dampened sentiment on Wall Street, but markets bounced back later on Friday following the release of reassuring jobs and wages data. Market watchers said Hong Kong was expected to follow Wall Street's lead this week. 'I think it will open a little bit higher because of positive sentiment from the US and on Friday, it did fall quite sharply,' Worldsec International director Carlton Poon said. 'It will bounce up a bit but if it shows too much strength, there'll be a bit of profit-taking.' Mr Poon expected some rotational buying within the blue chips and thought it unlikely the index would close the week above the 13,000-point level. Another analyst said: 'The performance in New York on Friday and the numbers that came out suggested that there should not be an immediate pressure to raise interest rates.' Analysts speculated most of the buying would be in second and third-liners and the Internet theme would continue to be a strong lure. Laggards, especially in the red-chip sector, should perform well as the market was also speculating that the mainland government would lower interest rates. However, much of the interest would still be on Internet-related stocks following what appeared to be another technology back-door listing. On Friday, sources said New World Development was set to become the majority shareholder of property development and investment company Paul Y Properties. 'I understand that they're being called New World Technologies,' one analyst said. 'What has happened is that they [Paul Y] could acquire assets from New World . . . and this could be the first step that New World is taking to get a separate listing for its Internet interests. There may be more such developments in the market.' Last Tuesday, Tricom soared when resuming trade following cyberport developer Pacific Century Group's takeover offer. As for the blue chips, brokers said trading would remain sensitive ahead of the Fed's next meeting on interest rates, on May 18. 'On Friday, we had quite a shake-out so it wouldn't be surprising if we rebounded today,' South China Brokerage director Howard Gorges said. 'But it's not so likely that the market will roar up to 14,000 to 15,000 without more obvious signs of recovery.' Friday's downturn confirmed some analysts' belief the market was ready for a consolidation. Prudential-Bache Securities technical analyst John Schofield said: 'The market has been looking a bit tired. The market is clearly signalling now that it wants a good consolidation - it's not going to rebound immediately.'