The Hong Kong market rose to a seven-week high yesterday, following renewed investor interest in blue chips and a sharp drop in global oil prices on Thursday.
Brokers said sentiment remained positive for property and banking counters, as investors believed that the city's banks will be able to hold interest rates at current levels despite expectations of another rate rise in the United States next week.
'The theme in the market is still speculation over a revalued yuan and with the recent inflows of liquidity, the pressure is down on local interest rates,' Rexcapital Asset Management director Alex Wong Kwok-ying said. 'That will continue to help property stocks.'
The Hang Seng Index closed 69.78 points, or 0.5 per cent, higher at 13,909.42, off a high of 13,956.52.
Turnover was $17.39 billion, up significantly from $11.54 billion on Wednesday but still down from Tuesday's $20.14 billion.
Only four of the blue-chip index's 33 constituent stocks suffered losses, while six finished flat.
