"We expect next year's equity returns to be focused on earnings growth as valuations are more stretched," HSBC analysts led by Nicole Inui wrote in a note. The benchmark index has had a good run this year, having gained close to 28% so far, broadly boosted by the so-called 'Magnificent 7' stocks on the artificial intelligence boom. A resilient macro-economic backdrop, continued earnings growth and gradual easing in inflation also further supported the index.