MARKET DEVELOPMENT
Bursa Malaysia Likely To Be Firmer Next Week
Bursa Malaysia Likely To Be Firmer Next Week
08/06/2013 (Bernama) - Bursa Malaysia is likely to be firmer next week on recovery of crude palm oil/plantation stocks and the return of anchor investors due to end of school holiday.
Affin Investment Bank vice-president/head of retail research, Dr Nazri Khan, said most local indices were still solid with FBMKLCI, FBM70 and FBMSmallCap within three per cent of all-time highs and the offensive cyclical sectors continued to lead the market last week.
"We see cyclical sectors such as finance, trading service, property and finance sectors holding well, suggesting improved sentiment in the near term.
"Further, we see bullish reversal in the weaker performance of plantation sectors as well the small-capitalised/mid-capitalised stocks.
"Stronger performance in the plantation and smaller size-cap stocks normally suggest rising risk appetite and augurs well for the broad marke," he told Bernama.
Nazri said the local bourse was also likely to get support on regional strength, with the Japanese Nikkei recently climbing to its highest level in five years (but falling short of the 16,000 level).
As for technicals, Nazri said, momentum studies were trending higher and closed to golden crossovers suggesting near term strength.
"FBMKLCI seems to carve out a bullish symmetrical triangle with resistance and support pegged at 1,800/1,780 and 1,760/1,740 levels respectively," he said.
For the week just-ended, the market saw a 'healthy correction' following a recent high, he said.
Nazri said despite trading sideways for the last four weeks, the bourse showed stronger relative performance last week due to its defensive appeal amid volatility despite a weakening ringgit against the US dollar
"The fact that the local stocks are holding well near their one-month low despite negative global data suggests short-term resilience.
"The uncertainty over how long the Federal Reserve will continue to pump liquidity into the global financial system and the steep dollar falls against the yen and the euro was the major cause of volatile equities performances last week," he said.
On a week-to-week basis, the FBM KLCI ended 6.37 points better at 1.775.59 from 1,769.22 last Friday.
The Finance Index increased 88.4 points to 19,937.33 from 16,848.93 last week.
The Plantation Index rose 177.44 points to 8,340.71 from 8,163.27 and the Industrial Index added 156.41 points to 3,027.8 from 3,023.78.
The FBM Emas Index increased 9.3 points to 12,387.12 from 12,377.82 and the FBMT100 Index gained 11.74 points to 12,141.01 from 12,129.27 last Friday.
The FBM Ace Index slipped 25.71 points to 4,687.24 from 4,712.95 and the FBM Mid 70 Index declined 113.88 points to 14,365.05 from 14,478.93.
Weekly turnover dipped to 10.11 billion shares valued at RM11.12 billion from 10.862 billion shares worth RM13.287 billion last week.
Main market volume eased to 7.8 billion units worth RM10.73 billion from 9.142 billion shares worth RM12.969 billion last week.
The ACE market volume increased to 2.03 billion shares valued at RM351.21 million from 1.460 billion shares valued at RM199.04 million previously.
Warrants surged to 255.75 million units valued at RM35.6 million from 246.774 million units worth RM37.376 million.
Affin Investment Bank vice-president/head of retail research, Dr Nazri Khan, said most local indices were still solid with FBMKLCI, FBM70 and FBMSmallCap within three per cent of all-time highs and the offensive cyclical sectors continued to lead the market last week.
"We see cyclical sectors such as finance, trading service, property and finance sectors holding well, suggesting improved sentiment in the near term.
"Further, we see bullish reversal in the weaker performance of plantation sectors as well the small-capitalised/mid-capitalised stocks.
"Stronger performance in the plantation and smaller size-cap stocks normally suggest rising risk appetite and augurs well for the broad marke," he told Bernama.
Nazri said the local bourse was also likely to get support on regional strength, with the Japanese Nikkei recently climbing to its highest level in five years (but falling short of the 16,000 level).
As for technicals, Nazri said, momentum studies were trending higher and closed to golden crossovers suggesting near term strength.
"FBMKLCI seems to carve out a bullish symmetrical triangle with resistance and support pegged at 1,800/1,780 and 1,760/1,740 levels respectively," he said.
For the week just-ended, the market saw a 'healthy correction' following a recent high, he said.
Nazri said despite trading sideways for the last four weeks, the bourse showed stronger relative performance last week due to its defensive appeal amid volatility despite a weakening ringgit against the US dollar
"The fact that the local stocks are holding well near their one-month low despite negative global data suggests short-term resilience.
"The uncertainty over how long the Federal Reserve will continue to pump liquidity into the global financial system and the steep dollar falls against the yen and the euro was the major cause of volatile equities performances last week," he said.
On a week-to-week basis, the FBM KLCI ended 6.37 points better at 1.775.59 from 1,769.22 last Friday.
The Finance Index increased 88.4 points to 19,937.33 from 16,848.93 last week.
The Plantation Index rose 177.44 points to 8,340.71 from 8,163.27 and the Industrial Index added 156.41 points to 3,027.8 from 3,023.78.
The FBM Emas Index increased 9.3 points to 12,387.12 from 12,377.82 and the FBMT100 Index gained 11.74 points to 12,141.01 from 12,129.27 last Friday.
The FBM Ace Index slipped 25.71 points to 4,687.24 from 4,712.95 and the FBM Mid 70 Index declined 113.88 points to 14,365.05 from 14,478.93.
Weekly turnover dipped to 10.11 billion shares valued at RM11.12 billion from 10.862 billion shares worth RM13.287 billion last week.
Main market volume eased to 7.8 billion units worth RM10.73 billion from 9.142 billion shares worth RM12.969 billion last week.
The ACE market volume increased to 2.03 billion shares valued at RM351.21 million from 1.460 billion shares valued at RM199.04 million previously.
Warrants surged to 255.75 million units valued at RM35.6 million from 246.774 million units worth RM37.376 million.