KUALA LUMPUR: Bursa Malaysia is likely to see a healthy dip next week, to pull back towards 1,420-point support level before trending higher for a reasonably positive fourth quarter, dealers said.
Head of retail research at Affin Investment Bank, Dr Nazri Khan, said the index was ripe for a pullback, which was necessary since the market was overbought and minor resistance level was spotted at 1,450 levels.
“The weakness is seen as healthy although market’s direction next week will likely centre on worries about growth in China, Spain’s credit rating downgrade, Fitch’s negative watch on multiple big banks and reports that Deutsche Bank needed euros nine billion to survive the stress tests,” he told Bernama here yesterday.
On the local front, Nazri said, any dip was an opportunity to buy.
“In the meantime, there will be ample local positive news flow to add more steam to the current rally,” he said.
Meanwhile, TA Securities senior technical analyst, Stephen Soo, said if the market’s volume remained above one billion units, or preferrably 1.5 billion units, it would be positive for the broader market.
“We expect to see the barometer hover between 1,420 and 1,450 level next week,” he said.
For the week just-ended, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 2.44 points to 1,442.43 from last Friday’s 1,400.05.
Trading was choppy, testing the fragile investor confidence amid eurozone’s debt crisis.
On a week-to week basis, the Finance Index rose 471.76 points to 13,242.59, Plantation Index jumped 222.22 points to 7,309.23 and the Industrial Index rose 101.22 points to 2,632.14.
The FBM Emas went up 327.27 points to 9,801.53, FBMT100 increased 304.34 points to 9,633.87, FBM Ace Index edged up 231.21 points to 3,879.07 and the FBM70 Index rose 417.60 points to 10,472.22.
Total weekly volume increased to 5.305 billion shares worth RM6.485 billion from 4.08 billion shares worth RM6.17 billion last week.
Main market turnover rose to 3.943 billion units valued at RM6.339 billion from 3.16 billion units valued at RM6.06 billion previously.
Warrants increased to 691.914 million shares worth RM50.001 million from 301.66 million shares worth RM24.82 million last Friday.
Volume on the ACE market increased to 1.963 million units valued at RM87.073 million from 604.48 million units valued at 75.55 million last week. — Bernama