Brokers say the rebound may be partly due to big investors window dressing
The stock market closed higher yesterday, extending Wednesday's turnaround from four consecutive days of losses.
But brokers warned that investors would remain cautious over worries that the rebound could be partly attributed to window dressing by institutional investors keen to enhance their portfolios as the first quarter drew to a close.
The Hang Seng Index rose 91.13 points, or 0.68 per cent, to close at 13,516.88. Turnover improved to $15.84 billion from Wednesday's $14.95 billion.
The market was also boosted by Wednesday's gains on Wall Street, where the Dow Jones Industrial Average rose 1.3 per cent and the Nasdaq Composite Index surged 1.6 per cent. United States investors had been buoyed by weaker-than-expected consumer data, which reduced the pressure of further interest-rate increases, and weakening crude oil prices.
The Hang Seng Index rose to 13,556.14 at one point during the day after opening at 13,515.38. But profit taking emerged after the lunch break, pulling the index back to just above its opening level.
