The key Hang Seng Index (HSI) gained 352.08 points, or 2.3 per cent, over the week to close at 15,447.61 on Friday. The Federal Reserve cut interest rates for the first time in two years, sparking a meteoric rise in property and banking stocks. Following news of the Fed's decision, the HSI rose 645.45 points on Thursday to end the day at 15,235.03. The gain was led by Sun Hung Kai Properties, which soared 9.15 per cent to end the day at HK$80.50. The property counter rose by 3.7 per cent again on Friday to end the week at HK$83.50. There was further good news for Cheung Kong Holdings, which ended the week at HK$104, having started out on Monday at HK$99.50. The banking sector also saw strong returns, with Hang Seng Bank and HSBC posting good performances. Hang Seng Bank closed on Friday at HK$107, up HK$2 for the week. HSBC started the week at HK$115.50, closing on Friday at HK$118.50. South China Brokerage vice-chairman, Howard Gorges, believes the sustained rise in the HSI was also due to anticipation of further rate cuts. 'People were starting to anticipate another cut in rates,' he said. Institutional investors have also been flocking back to the market. 'Volumes were good, which shows the return of institutional investors,' Mr Gorges said. This week, however, could see a drop in the HSI, given the rumblings emanating from Wall Street. Trading in Bank of America shares was suspended last week, as concern mounted pending an announcement by the company. The bank has suffered heavy losses in derivatives trading. '[The Hang Seng Index] will go down on the back of Wall Street [this] week,' said Mr Gorges. 'The rumours about Bank Of America will affect the market, but the impact should be limited.' In Tokyo, the Nikkei-225 Index ended a strong week to close at 13.867.61. The market benefited from the weak yen, with high-technology issues faring particularly well. The FTSE-100 Index closed the week at 6198.1, down from 6222.50 the previous week. Concern over the US economy's hard landing stymied investor enthusiasm and the telecoms sector rebound was the only bright spot in the shortened week. In New York, the Nasdaq ended the week down 2.54 per cent, at 2,407.65. The Dow Jones Industrial Average ended at 10,662, down 1.16 per cent for the week. Graphic: HSI07gwz
