Blue chips rose 1.87 per cent yesterday but market watchers said it was far from being the start of a whole-hearted, sustainable rally.
'I still see it as short covering, this isn't a positive scenario,' TAL CEF Global Asset Management deputy managing director Peter Chau Ming-tak said.
The Hang Seng Index rose 278.99 points to 15,160.29.
Traders who had taken short positions, betting the broad market would slide on interest rate worries, cashed out before the Federal Reserve meeting yesterday, Mr Chau said.
The market was expected to rally if the Fed raised interest rates 50 basis points on the view the tightening cycle was nearly over. That would work against short sellers.
For investors taking long positions, Mr Chau said reality might sink in after a Fed-induced rally.
