A lack of conviction in the market saw Hong Kong stocks end the week yesterday by drifting back through the levels seen in November last year.
The Hang Seng Index closed 34.05 points or 0.31 per cent lower at 10,691.25 on a turnover of HK$6.35 billion.
'It comes back to what some traders are saying: that the market is at a level where it is fairly priced, short covering has been completed and people still believe that . . . current valuations are not justified, so people are taking short positions again,' South China Securities institutional sales head Raymond Tsui Yick-ki said.
However, Mr Tsui said he did not share that opinion.
'I'm not that negative - the market at this level is looking like it is consolidating and has room to go up from here,' he said.
Investors have also been rattled by the fallout from the bankruptcy of United States energy trader Enron Corp.
