Share prices are expected to extend yesterday's gains after Wall Street rose overnight and Intel, the world's largest semiconductor company, issued a positive second-quarter outlook.

However, trade may be cautious ahead of China's inflation data due out today, dealers said.

Yesterday, the Hang Seng index closed up 90.13 points or 0.38 pct at 23,901.33. Turnover was 71.45 bln hkd.

'I expect the market to open higher following gains on Wall Street and regional bourses, but the upside may be capped due to the record oil price and ahead of China inflation data,' said Patrick Yiu, associate director at CASH Asset Management.

Crude oil futures touched a record 114.08 usd a barrel in New York trading.

Yiu said the market will not be hit hard if China's March CPI growth is in line with the market's estimate of 8.3 pct.

'Though it is still a high level, the market has mostly factored this in,' he said.

Yiu said the key index would move in a 23,750-24,200 range.

Investors are waiting for US data, including March CPI and new residential construction, tonight.

PICC P&C will be watched after reporting weaker-than-expected 2007 results, with net profit rising 43.8 pct to 2.99 bln yuan.

COSCO Pacific may be hit after news that a major shareholder has offered to sell 56.69 mln shares in a placement deal at 13.08-13.20 hkd per share.

SMIC will likely to see profit-taking after yesterday's 42 pct surge. It said it has not made any decision regarding a strategic investment in the company by a third party.

(1 usd = 7.8 hkd)