THE share market bounced back above the 9,000-point level in firm trading yesterday. The Hang Seng Index put on 2.49 per cent to close 222.26 points higher at 9,156.85. Turnover was solid at $5.35 billion, with 812 million shares traded in 37,320 deals. Brokers said much of the buying was retail-based with smaller investors selectively buying stocks at lower prices. Institutions were net sellers, which was particularly noticeable towards the end of the day when the rally faltered and prices dropped. Major brokerages were heavy sellers of index futures contracts after the cash market closed. The sharp sell-off in the last 30 minutes of trading saw the April and May futures close at a slight discount to the cash market. Jardine Fleming Futures senior floor trader Vivian Ting said most institutions were short in the market by the end of the day ahead of the weekly meeting of the Hong Kong Association of Banks. The decision by the association to leave interest rates unchanged may lead to further selling pressure next week as most brokers believe a rate rise is inevitable. Asset managers remain cautious on the market even at lower levels. GT Management investment manager Simon Male said the market would continue to trade between the high 8,000 and mid-9,000 level unless some substantial news changed the earnings outlook. ''The market doesn't deserve to be rerated, with interest rates increasing and earnings already peaked,'' he said. The land situation continues to dominate the market. As Thursday's announcement of an increase in the land grant for residential use starts to sink in, many are wondering if it is enough to cool the market. ''The announcement doesn't do enough to address the supply problem. If they really wanted to do something about supply, they would have freed up much more land,'' said one broker. Lehman Brothers head of Asian equity sales Gerrit Heyns said the biggest force holding back property prices was the availability of mortgages. He said there were not enough long-term Hong Kong dollar deposits to match mortgages, which was holding back bank mortgage lending. ''There is still enough demand to meet the supply of land,'' he said. Trading moved in a 213-point range from a high of 9,236.54 to a low of 9,023.03. Trading was mainly led by index futures, with heavy buying seen in the morning. The index rallied to pass the 9,100-point mark, then took a break before climbing up to close the morning session at 9,214.97. The afternoon session saw bearish investors enter the market as heavy sellers of futures contracts, forcing the market sharply down just before closing. The futures selling continued after the share market closed with the April contract ending at 9,155 points. Hongkong Telecom was the best performing blue chip, gaining 60 cents to $14.70. HSBC also rallied, putting on $3 to $88. This brought it back to the level it was at before Thursday's sell-off. Hang Seng Bank also did well, putting on $2 to $52. Utility stocks continued to firm, with Hongkong Electric adding 50 cents to $23.50. Hong Kong and China Gas managed a 10-cent gain to $17. Property stocks did not perform as well. Sun Hung Kai Properties, which has been one of the worst performing counters over the week, slipped further. The counter dropped 25 cents to $46.75 in heavy turnover of $376.27 million. Cheung Kong rose 75 cents to $36.50.
