Interest rate concerns counteract rise on Wall St strength

The Hang Seng Index rose slightly yesterday as profit-taking and concerns over interest rates negated positive sentiment from a fresh record on Wall Street.

The blue-chip index closed 60.21 points, or 0.44 per cent, higher at 13,633.87 on turnover of $4.34 billion.

Heavy rains again cancelled morning trade.

The Dow Jones Industrial Average rose 1.79 per cent to a record close of 11,299.76 points on Monday, as investors decided an expected 25 per cent rise in US rates had been more than discounted.

Recent rises on Wall Street have strengthened sentiment in Asia but analysts said the domestic market was ripe for profit-taking after a 9.61 per cent gain in the past nine trading days.

'As the market has already risen 1,000 points in a short period of time we are bound to have some profit-taking at the higher level,' KGI Asia associate director Ben Kwong Man-bun said.

Investors were also cautious ahead of the United States' interest-rate setting Federal Open Market Committee meeting late yesterday and the indicators it would offer for the direction of monetary policy.