They said the banks' 50-basis point hike, which was higher than the quarter of a percentage point rise in the US Federal Reserve's key rate, raised concerns about the outlook for the property market and the developers.
This, combined with the new outbreaks found in China and Vietnam on Friday, will keep investors on the sidelines.
"There has been very little fund inflows today. Investors are cautious and obviously bird flu is impacting the market," said Herbert Lau, chief investment officer of CASH asset management at Celestial Asia.
"They are watching further development on the outbreaks."
A fresh increase in oil prices will also add pressure. Conita Hung, head of research at Delta Asia Financial Group, said most investors were hoping to see fresh catalysts to lift the cautious market.
Rate-sensitive property stocks, which have lost ground after the rate hikes, will remain in focus this week.
Oil shares and airline stocks, which fell sharply Friday following concerns over the high cost of fuel will also be closely watched, Lau said.
The Hang Seng Index ended the week up 289.90 points or 2.0 percent at 14,585.79.
Hung expects the index to trade between 14,200 points and 14,700 points this week.