AN extraordinary day of trading saw the Hang Seng Index plummet a further 5.1 per cent as the great sell-off continued. The Hang Seng Index closed 465.28 points down at 8,667.03. Turnover increased from last week at $6.22 billion, which indicates the selling may be picking up steam. There were 1.04 billion shares traded in 45,734 deals. Brokers noted the sell-off was across-the-board, including overseas mutual funds and wealthy Hong Kong individual investors. While sentiment remains at its lowest level for two years, there is little hope of a recovery, although today may see a technical rebound. Traders said the market was like a cat-and-mouse game. Timid mice would come out to buy in the hopes of a rebound only to be pounced on by big cats all to keen to sell at these levels. One United States broker said that any rally up to the 9,000 level was likely to be met with even stronger selling, effectively putting a cap at around 9,000 on the market. ''There are a lot of big sellers still out there waiting for buyers to come out,'' he said. While the initial drop in the market to the 10,000 level seems to have been caused by momentum-investors re-allocating to fresh markets, the latest sell-off is being fuelled by mutual fund managers fearing redemptions from their policy-holders. It is still too early to say whether there has been heavy redemptions, but the lack of liquidity in the Hong Kong market has foreign fund managers raising cash just in case. This is having a double-edged effect on the market. Not only is it shaking confidence, but it is also forcing the market down which means the mutual fund-holders are even more likely to want to quit their fund as they see their quarterly performance figures go negative. To put it in perspective, the run up from 7,000 to 12,000 was largely on the back of foreign fund money coming into the market with locals riding the wave. If there really is a complete reversal in the flow of foreign funds, the implications could be just as severe. The latest sell-off, which began last Thursday with the index at 9,513.13, was sparked by a Morgan Stanley report that the index could trade down to 7,000, and saw nine per cent stripped off the market. Morgan Stanley spokesman Mike Bodson said the report talked about multiple factors, and that the 7,000 figure would only be in a worst-case scenario if China's MFN (Most Favoured Nation) status was not renewed. The report said that if MFN were renewed and the interest rate situation became clearer, the market could reach as high as 14,000 points. ''It's a case of selective reading, and people are only picking up on bearish sentiment'', said Mr Bodson. Still, until the market gets some strong buying support and the sellers finally get out of the market, there seems little chance of a boost up to those levels in the short-term. The market moved in a 474-point range from a high of 9,132.39 to a low of 8,657.99. Trading opened around the 9,100 level but soon dropped to test 8,900 around 10.30am. The market tried to stage a rally and managed to climb back above the 9,100 level to reach the day's peak just before 11.30am. Heavy overseas and local selling then saw the index plummet more than 300 points in the run-up to lunch to close the morning session at 8,780.14 points. Afternoon trading saw a continuation of the morning's sell-off as the index hit the day's low just before 3pm, before staging a small rally to end the day just off the bottom. Of the 33 Hang Seng Index constituent stocks, 31 fell while two remained unchanged. HSBC lost $5 to close at $92.50. Hutchison lost 75 cents to close at $29.50, Cheung Kong surrendered $1.50 to close at $36, and Sun Hung Kai Property lost $3 to close at $50.