Hong Kong stocks ended the week on a softer note, with the Hang Seng Index slipping 1.15% on Friday to close at 24,961.95 as technology and biotech counters came under pressure amid cautious investor sentiment.
The benchmark index traded between 24,928.14 and 25,216.18 during the session, while the Hang Seng TECH Index fell 1.75% to 4,888.39 and the Hang Seng Biotech Index declined 0.95% to 12,393.09. The Hang Seng China Enterprises Index (HSCEI) also retreated 0.77% to 8,436.63.
Despite the weaker finish, trading during the week was marked by heightened volatility. On Tuesday, the Hang Seng Index Futures (HSIF) surged 704 points to 25,948, breaking above the 25,800 resistance level and reclaiming its position above the 50-day simple moving average, signalling a temporary improvement in market sentiment.
However, the rally proved short-lived as selling pressure returned over the following sessions. HSIF dropped 457 points on Wednesday to 25,491 before extending losses on Thursday, falling another 400 points to 25,091. The contract also broke below the key 25,350 support level, reinforcing concerns that the market remains in a corrective phase.
RHB Investment Bank Bhd (RHB Research) maintained its bearish trading bias throughout the week, noting that the futures contract remains below critical resistance levels and continues to trade under both the 20-day and 50-day moving averages. The research house said downside risks remain intact, with the next support level seen at 24,500 points, followed by 23,500 points.
While the Hang Seng Index briefly benefited from improved risk appetite earlier in the week, persistent weakness in technology-related counters and renewed profit-taking weighed on sentiment. Investors also remained cautious ahead of key economic data releases and shifting expectations surrounding global interest rates.
For the week ahead, market participants are expected to monitor whether the Hang Seng Index can hold above the psychologically important 25,000-point level, while traders watch the 24,500 support zone highlighted by RHB Research for signs of further downside pressure.
