Hong Kong shares outlook: Mixed to lower on Wall Street

HONG KONG (AFX-ASIA) - Share prices are expected to open mixed to lower, tracking the divergent performance in the DJIA and NASDAQ overnight, dealers said.	    Interest rate sensitive financials and properties will be continue to be supported however by optimism that the U.S. Federal Reserve will cut interest rates next week.	    Yesterday, the Hang Seng Index closed down 59.97 points or 0.44 pct at 13,540.81, off a low of 13,445.98 and a high of 13,599.63, on turnover of 5.81 bln hkd.	    The Hang Seng London Reference Index was up 0.64 points at 13,541.45.	    The Hang Seng May contract last traded at 13,493 points. 	    The overnight rate opened at 4.03125 pct, compared with 4.0 pct at  yesterday's close, while the 3-month HIBOR was unchanged at 3.875 pct. 	    The base rate remains at 6.0 pct.	    Simon Tam, dealing manager with Sassoon Securities, said: "The Hang Seng Index is seen mixed to lower after the opening bell, following the directionless trade on Wall Street overnight".	    Tam said the benchmark index will find support at around its 20-trading-day average of about 13,340 points.	    "Optimism on a further interest rate cut in the United States next week will continue to support financial and property counters, limiting losses in the Hang Seng Index," he said.	    Ben Kwong, associate director with KGI Securities, said: "The Hang Seng Index will be trading at around 13,500 points for the day amid a lack of fresh leads."	    Kwong said the overnight NASDAQ rise is unlikely to provide any support for technology or telecom stocks in the local bourse, as the rally was too small.    

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