THE market is expected to remain quiet this week with little buying interest from foreign funds or local investors.
Investors are expected to remain on the sidelines, as they await the outcome of the coming Group of Seven and US Federal Reserve Board meetings this week for hints about interest rate trends.
''I don't think interest rates will rise in the short term,'' said Philip Chan, research director of PBI Securities.
''Investors are more worried about the power struggle in China, which could make room for the market to move down.'' Eugene Law, research director of Standard Chartered Securities, said: ''The Hang Seng Index is expected to trade in the 8,450 to 9,000 range this week.
''However, Hong Kong's vulnerability to international movements will continue.'' The Hang Seng dived 2.78 per cent in a week of volatile trade, reaching an intra-day high of 8,843.68 and an intra-day low of 8,461.61. Average daily turnover was HK$3.293 billion Last week's market activity was preceded by significant falls in Europe and the US over the previous week. Erratic market movements in Hong Kong were accompanied by the expiry of the June futures contract, which had been blamed for unusual market behaviour.
Low turnover demonstrated investors' apathy in the face of the territory's sluggish share performance and the uncertainty of overseas currency and equity markets.