KUALA LUMPUR: Bursa Malaysia, despite the turmoil in europe and unexciting investment environment now, is expected to kick off 2012 on an upbeat note next week as it ushers in the year of the dragon, dealers said.
The market would be relatively firm as there was ample liquidity in the system and the financial system remained strong aided by positive trade figures.
“However, do not expect the dragon to wake up immediately and then soar,” the dealer said, expecting the dragon to slowly come out of its slumber, and lifting the key FTSe Bursa Malaysia KLCI (FBM KLCI) to a new high by mid-2012.
Jupiter Securities head of research Pong Teng Siew was of the opinion that the key index might hit 1,600 points, climbing 100 points or between six per cent and seven per cent, in the first half of next year.
The key index was at its all time high of 1,594.74 on July 8.
Pong said plenty of positive flows were likely next year with the onslaught of the 13th general election and rolling out of the economic Transformation Programme (ETP).
“Government spending on ETP is so timely which could buffer any external shocks while the feel-good factor in the next general election could provide the much-needed boost to the market,” Pong told Bernama today.
He said defensive stocks could be attractive next year and it would be a good time to shift some money into these stocks especially in uncertain economic environment.
“Among stocks that could attract interest are oil and gas, consumer and plantation.
Plantation stocks are likely to see positive buying in the next one to two months.
“Investors could take advantage of the stronger earnings enjoyed by plantation companies as palm oil production slows down on weather worries which will ultimately push up prices,” Pong said.
Bursa Malaysia ended a volatile 2011 on a strong note as window dressing activity became the catalyst for the last minute push, with the key index at its best in nine months.
The key FBM KLCI closed the week 34.58 points higher at 1,530.73.
Finance Index surged 338.18 points to 13,702.75, Plantation Index advanced 195.31 points to 8,162.70 and Industrial Index gained 64.56 points to 2,743.05.
FTSEBursa Malaysia Emas Index jumped 235.55 points to 10,489.07, FTSe Bursa Malaysia Mid 70 Index perked 275.44 points to 11,575.91 and FTSe Bursa Malaysia Ace Index added 29.77 points to 4,068.58.
Weekly volume dropped to 5.18 billion shares, worth RM4.34 billion, from 7.05 billion shares, worth RM4.996 billion, transacted last week.
The Main Market turnover declined to 2.89 billion units, valued at RM3.93 billion, from last week’s 3.88 billion units worth RM3.8 billion.
Warrants eased to 1.11 billion shares, worth RM246.08 million, from 1.41 billion units, valued at RM805.04 million, traded previously.
Volume on the ACEMarket fell to 1.16 billion units, worth RM136.56 million, from 1.68 billion units, valued at RM187.26 million, registered last week. — Bernama