Bursa Malaysia shares set to stage further rebound

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KUALA LUMPUR: Shares on Bursa Malaysia are likely to stage a further rebound, driven by a dovish US Federal Open Market Committee (FOMC) statement and positive global economic data.

Affin Hwang Investment Bank vice-president and head of retail research Datuk Dr Nazri Khan Adam Khan said besides that, oil prices were expected to experience a mild jump, while Wall Street and Asian regional indices would undergo a wilder upside swing ahead of the New Year window dressing.

“The positive global economic data encompass the US Industrial Production, the Germany Purchasing Managers’ Index (PMI), the France PMI and a Europe trade balance.

“We believe Bursa Malaysia will see a modest recovery bounce.

However, aggressive bulls might consider using a post-Federal Reserve meeting drop in the FBMKLCI as an opportunity to buy on dips for a corrective bounce back toward the 1,730 and 1,750 resistance area,” he said.

For the week-just-ended, the benchmark index closed 17 points lower at 1,715.99, driven by continuous buying support in selected blue chips.

The FBM Emas Index erased 67.13 points to 11,799.34, the FBMT100 Index eased 74.45 points to 11,542.4, the FBM 70 increased 72 points to 12,896.45 and the FBM Ace improved 50.83 points to 5,603.33.

Sector-wise, the Industrial Index fell 37.72 points to 3,100.57, the Finance Index gave up 189.23 points to 15,273.77 and the Plantation Index eased 289.82 points to 7,477.66.

Weekly turnover increased to 9.42 billion shares worth RM10.63 billion from 6.58 billion shares worth RM8.12 billion last week.

Main market volume improved to 6.88 billion shares, valued at RM10 billion against 4.54 billion shares, valued at RM7.55 billion previously.

Warrants’ turnover rose to 763.4 million shares valued at RM246.73 million against 754.81 million shares valued at RM785.49 million.

The ACE market volume went up 1.74 billion shares worth RM365.82 million from 1.27 billion shares worth RM257.06 million transacted previously. — Bernama