Morgan Stanley Dean Witter's Peter Churchouse offers bullish forecast for stock

Morgan Stanley Dean Witter managing director Peter Churchouse has offered a bullish forecast for the stock market, predicting the Hang Seng Index can rise to 16,500 points in the next eight to nine months.

His optimistic prediction was made in view of an expected recovery in the economies of Hong Kong and the region.

He said Asian economies had improved as a result of increased exports and a reduction in interest rates compared to six months ago.

Mr Churchouse said Hong Kong would benefit from the recovery in the region and it would also be helped by continued growth in the mainland's economy.

The chance of an upward movement in the Hang Seng Index was higher than a decline, but in the short-term Mr Churchouse said the market could fall to between 11,500 and 11,700 points.