TRADING in blue chips continued to dominate stock market activity yesterday with the top 10 listed shares taking about 40 per cent of the $5.7 billion turnover. HSBC Holdings was the most heavily traded stock, with a turnover of $400 million as the counter rose $1 to $85.50 - adding 14.45 points to the index. In index terms, Hongkong Telecom had the biggest impact, adding 31.96 points as it rose 50 cents to $14.90 on a turnover of $174.7 million, the fifth-heaviest of the day. The index opened to steady sentiment with only five points being made in the first 15 minutes of trading. Uncertainty surrounding statements in China about the negative impact of the Sino-British impasse on democracy for the territory in 1995 caused some investors to stay on the sidelines. By 10.30 the index had crept through 8,300, but it then slipped back below the threshold. In the absence of significant selling pressure and with the profit-takers worked out of the system, the index resumed its upward course of the past few weeks. By mid-day it had broken through a previous intra-day high to reach 8,330.55. At the morning close it was at 8,371.59, up 78.63 points or 0.95 per cent on about $2.2 billion of turnover. In the afternoon the index romped through the 8,400 mark to end at the 8,412.4 close after a high of 8,419.29. Brokers are predicting, and others are praying for, some kind of correction or pause in the index. For the second successive day the cash market ended higher than futures. Amid some profit-taking of 8,000 contracts, and with the growing time decay, brokers suggested futures were losing their potency as a guide to further movements in the spot. Turnover rose to 10,158 contracts, with the open interest at 23,013, up 348. The October contract stopped at 8,388, up 129 on the day. On the spot market, Cheung Kong, the second most heavily traded stock with a turnover of $314.53 million, was up $1 to $31.75. Hutchison Whampoa was up 50 cents to $25.90 on a turnover of $186.96 million. Sun Hung Kai Properties rose 75 cents to $46 on a turnover of $154.92 million. Among second-and third-liners, Allied Group was active. Allied Properties rose nine cents to $1.82 on a turnover of $241.22 million, making it the third most heavily traded stock of the day; while Allied Group was up four cents to $1.18 on a turnover of $154.62. Mainland listing Shanghai Petrochemical continued to be actively traded, rising 7.5 cents to $2.225 on a turnover of $137.36 million. The heavy trading in the Hong Kong time zone was put down to local institutional and mainland individual buying. There was considerable red-chip activity as more adventurous US investors, having loaded up with blue chips in Hong Kong, moved into locally listed China businesses. Guangzhou Investment was up 15 cents to $2.45; China Travel Hong Kong rose 20 cents to $2.50; and Guangdong Investment was up five cents to $3.50. Yue Yuen rose 11 cents to $1.71. Meanwhile, the exchange has been told that Itochu Corp has increased its interests in Island Dyeing & Printing Co by 2.3 million shares, which represent 3.49 per cent of the company's issued share capital. At AWT World Transport Holdings, Alfred Lam King-ko has reported an increase in his interests in AWT by five million shares, which represent 2.94 per cent of the company's issued share capital. Fong Chun-fat has reported a decrease in his interests in AWT by five million shares. Key industrials and a financial announce results today. Guoco is expected to announce the completion of its takeover of Overseas Trust Bank with its final results. The deal was due to be given final approval on October 15, a government source said. Luks Industrial and Wong's International announce interims.