Hong Kong stocks traded within a narrow range on Monday, mirroring a lack of clear direction in global markets. Investors appeared hesitant to take on significant new positions ahead of the year-end holidays.

The Hang Seng Index fluctuated throughout the session, failing to break decisively above or below key resistance and support levels. This indecisiveness suggests that market participants are waiting for fresh economic data or corporate news to provide a clearer outlook for the coming year.

Trading volumes were noticeably lighter than usual, a common occurrence during the holiday season. Many institutional investors have already closed their books for the year, further contributing to the subdued market activity.

Analysts suggest that the Hong Kong market may continue to trade sideways in the near term, unless a major surprise event occurs. The focus is expected to shift to the release of economic indicators in the new year, which could provide clues about the health of the Chinese and global economies.

Specific sectors showed mixed performance. Some technology stocks experienced gains, while certain financial and property counters faced selling pressure. Overall, the market lacked a strong unifying theme.

Looking ahead, investors will be closely monitoring developments in the US Federal Reserve’s monetary policy and the ongoing trade negotiations between major economies. These factors are likely to play a significant role in shaping the direction of the Hong Kong stock market in the months to come.