WITH investor sentiment quickly sinking, the only positive sign in the market yesterday was the Hang Seng Index snapping a string of six consecutive declines by rising a modest 3.51 points to 6,956.1.
But volume of only $3.02 billion provided further confirmation that the summer doldrums had taken root after an exciting first half of the year.
Smith New Court broker Simon Caplow said many foreign institutional investors were taking a cautious approach until they assessed China's troubled economic situation, while local investors were waiting to see how Shanghai Petrochemical's public offer would turn out.
''Everyone is looking for the right entry point and volume tells you everyone's on the sidelines,'' he said. ''There's not a lot of news out there.'' Seapower Securities research director Samuel Lau Kwok-leung said the market was sluggish and investor sentiment was poor, especially among retail investors.
''They don't want to get into the market because there's no stock they can punt,'' he said, adding that the market would remain dull until there was a breakthrough on the political front.
One of few interesting developments was Harbour Centre Development, which fell 14.2 per cent or $1.40 to $8.40 after Wharf Holdings called off plans to privatise the company.