KUALA LUMPUR: Share prices on Bursa Malaysia are expected to trade firmer next week on global market strength, as global economic numbers fuel more gains.
Affin Investment Bank Bhd vice-president and head of Retail Research Dr Nazri Khan said Bursa Malaysia should gain from the positive effects stemming from the recovering markets.
“Caught in the centre of the subprime crisis, the US and Europe are showing resilience in the wake of the unexpected dovishness of the US Federal Reserve and European Central Bank, despite talks of early tapering,” he told Bernama On the technical front, the momentum of the local equity market was still far from entering overbought levels and the next area of resistance would be between 1,810 and 1,826 levels.
Nazri said there may be some short-term light volume profit-taking following the recent drive above the 1,800 psychological level.
He said global equity markets were likely to focus on active flow of economic data next week, including the US weekly jobless claims, US advanced durable goods orders, Federal Reserve Chairman Ben Bernanke’s statement ,as well as, China’s inflation and Industrial Production data.
On the domestic front, several catalysts that could buzz investors’ interest include, among others, a hike in the overnight policy rate by Bank Negara Malaysia, rising inflationary pressure and a sharp increase in domestic demand.
On a Friday-to-Friday basis, the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) rose 18.2 points to 1,812.72, the Finance Index advanced 231.41 points to 16,675.65, the Industrial Index rose 25.84 points to 3,153.83 and the Plantation Index increased 72.82 points to 8,880.05.
The FBM Emas Index increased 77.29 points to 12,572.04, the FBMT100 Index advanced 82.06 points to 12,302.33 while the FBM 70 erased 76.1 points to 14,181.25 and the FBM Ace fell 43.7 points to 5,592.51.
Weekly total turnover rose to 7.85 billion shares, worth RM9.46 billion, from last week’s 6.172 billion shares worth RM6.707 billion.
Main market volume rose to 5.66 billion units, valued at RM8.96 billion, from 4.822 billion units, valued at RM6.406 billion, recorded last week.
Warrants turnover increased to 192.34 million shares, worth RM20.43 million, from 99.263 million shares, worth RM10.603 million, registered previously. — Bernama
FBM KLCI
THE FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) futures contract is likely to trade steadier next week in line with the underlying equity market amid positive sentiment from global markets.
Affin Investment Bank vice-president and head of Retail Research Dr Nazri Khan said the local bourse would be positively impacted by the recovering developing equity markets.
“Caught in the centre of the subprime crisis, the United States and Europe are showing resilience in the wake of the unexpected dovishness of the US Federal Reserve and European Central Bank, despite talks of early tapering,” he told Bernama On a Friday-to-Friday basis, spot month November 2013 rose 20 points to 1,807.5, December 2013 added 23.5 points to 1,811.5, March 2014 was 24.5 points higher at 1,811.5 and June 2014 gained 24 points to 1,806. — Bernama
KLIBOR
THE three-month Kuala Lumpur Interbank Offered Rate (Klibor) futures contract on Bursa Malaysia Derivatives is likely to be quiet next week given the gloomy outlook for the cash market, dealers said.
For the week just-ended, the contract saw moderate trading despite sentiment being
dampened by concerns over the US Federal Reserve’s move to scale back its stimulus programme earlier than expected, hence reducing the inflow of funds into emerging markets.
Turnover stood at 100 lots, against nil last week, with open interest flat at 5,745 contracts. — Bernama