KUALA LUMPUR: Bursa Malaysia is likely to be bullish in the run-up to the Budget 2015, dealers said.
A dealer said the budget expectations were likely to trigger a pre-budget rally and power, healthcare, construction, oil and gas sectors would likely attract investor interests.
Affin Investment Bank vice president/head of retail research, Dr Nazri Khan Adam Khan, said the Budget 2015 (scheduled on October 10) and the impending launches 2014 biggest mega initial public offerings – 1Malaysia Development Bhd, Iskandar, Weststar and Carimin Bhd – should be market-positive.
“We expect these catalysts to attract foreign investor interest and foreign funds to spur Bursa Malaysia,” Nazri told Bernama.
As the global stocks rose sharply, he said, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) should make U-turn and rebound.
For the week just-ended, the FBM KLCI fell by 6.15 points to 1,849.49 from 1,855.64 last Friday.
The Finance Index gained 2.08 points to 17,392.41.
The Industrial Index fell 3.03 points to 3,209.40 and the Plantation Index declined 93.06 points to 8,397.72.
The FBM Emas Index was 47.29 points lower at 12,944.31, FBMT100 Index fell 43.43 points to 12,523.15, FBM 70 eased 56.19 points to 14,306.89 and the FBM Emas Shariah Index was 35.77 points easier at 13,198.81.
The FBM Ace gained 77.50 points to end the week at 7,255.61.
For the holiday-shortened week, the weekly turnover fell to 8.84 billion shares valued at RM8.16 billion from 11.85 billion shares valued at RM10.11 billion recorded last week. The market was closed on Tuesday for Malaysia Day.
Main market volume dipped to 5.94 billion units worth RM7.59 billion from last week’s 8.43 billion units worth RM9.42 billion.
Warrants turnover declined to 106.56 million units valued at RM14.70 millio from 187.29 million units valued at RM24.95 million last week.
The ACE market volume fell to 2.42 billion shares worth RM508.31 million from 3.2 billion shares worth RM658.68 million previously. — Bernama
FBM KLCI
The FTSE Bursa Malaysia (FBM) Kuala Lumpur Composite Index futures contracts (FKLI) on Bursa Malaysia Derivatives are expected to move higher as the cash market is expected to enter ‘pre-budget rally’ mode.
Traders said the sentiment would also be in tandem with the improved risk appetite and the likely upbeat performance of global stocks, which would see Dow Jones Industrial Average and Japan’s Nikkei 225 continue to scale new high.
Meanwhile, Affin Investment Bank vice president/head of retail research, Dr Nazri Khan Adam Khan, said with the expected rises in global markets, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) should make an U-turn and rebound.
“Aggressive ‘bulls’ might consider buying FBM KLCI index futures on a breakout above 1,850, positioning for a larger jump to an all-time-high of 1,900,” he told Bernama.
On a Friday-to-Friday basis, September 2014 rose 10.5 points to 1,848, October 2014 advanced 10.5 points to 1,849.50, December 2014 added seven points to 1,852 and March 2015 gained 10 points to 1,851. — Bernama
KLIBOR
The three-month Kuala Lumpur Interbank Offered Rate (Klibor) futures contracts on Bursa Malaysia Derivatives are likely to remain quiet.
For the week just-ended, the Klibor futures remained flat with no contract months traded.
On a Friday-to-Friday basis, October 2014 trimmed one tick to 96.24, while November 2014 and December 2014 were pegged at 96.23 and 96.24 respectively.
Meanwhile, open interest decreased to 2,660 contracts from last Friday’s 3,310 contracts. — Bernama