HUNTING for bargains and strong buying interest from Chinese and US investors saw the Hang Seng Index sharply rebound yesterday following four sessions of decline.
The index jumped 183.5 points to 7,449.08 on modest turnover of $3.35 billion.
It is now 156.18 points below its record of 7,605.26, which was set last week.
Salomon Brothers institutional sales executive Julian Lees said the market had been oversold this week, and investors had started to move back into blue chips.
HSBC Holdings' share price climbed $3 or 3.27 per cent to $83.50 after it had weakened following the release of disappointing results by 61 per cent owned Hang Seng Bank last Thursday. Hang Seng was up $1.50 to $55.50.
Trade in the two banks contributed 60 points to the index. They were the most actively traded counters, with turnover of $254.8 million and $204.9 million, respectively.
Hongkong Telecom also played a large role in the rally, rising 40 cents to $12.20.