Record run to continue
INVESTORS cannot ignore the local market even if they balk at the prospect of the bourse over-heating as it pushes towards a record high of 8,000 points.
Director of Baring Securities James Osbourne summed up the feeling on the market. He said: ''It seems to be to gear yourselves to the eyeballs and go for broke in this bizarre market.'' Disappointment following the announcement of the interim results of Hang Seng Bank made for a final sell-off on Friday, leaving the market down some 60 points on the day at 7,545.
That still represents a rise of 153 points on the Hang Seng Index over the week.
Investors started the week with the blue chips as favourites, but soon buying broadened, and punters went after the laggards.
There was hope that yet another round of Sino-British talks at the beginning of the week would make some headway in settling the uncomfortable stand-off over Hong Kong's political future.
However, nothing was achieved in Beijing. Yet nobody in Exchange Square seemed to care.
There was also eager anticipation over the results of the likes of Hang Seng Bank, Cheung Kong Holdings and Hutchison Whampoa.
These turned out to be a mixed bag, resulting in a banking sector sell-off. UBS Securities' John Mulcahy believed the reaction was overdone.
Investors headed for defensive counters towards the end of the week, probably a little shell-shocked by the record-breaking run. Yet sentiment remains firm.
The upcoming results which include Jardine Matheson Holdings, Swire Pacific and a bevy of solid second-liners should all receive a hearty round of applause from analysts and investors alike.
This could support the stock market through bouts of profit-taking.
The market is liquid. Throughout the week, daily turnover averaged slightly less than $5 billion, and if Chinese money is finding its way back to the market after a respite in July, the run could continue.
Brokers say the records were achieved without a feeding frenzy in Exchange Square.
Buying, they insisted, was calm and collected.