Thursday, August 22

Share prices likely to continue upward momentum next week

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KUALA LUMPUR: Share prices are likely to continue their upward momentum next week supported by further window-dressing activities by fund man­agers as they prepare for another new year.

With only one trading day left on Monday next week for 2012, all eyes have been following closely on the movement of the FTSE Bursa Malaysia KlCi (FBM KlCi) to see whether the last day of the year will record another high after a record of 1,686.7 on Friday.

inter-Pacific Research sdn Bhd head of Research, Pong Teng Siew, said with this momentum, the barometer index could hit 1,700 level during the first two weeks of January as the upward momentum builds up.

However, the jump will not be as much, as banking stocks, which currently account for 35 per cent of total FBM KlCi’s weightage, have not been moving that much despite being attractive.

He also said further buying interest in heavyweights, coupled with regional and world markets which were also on the rise despite concerns over the Us’ fiscal cliff, would drive the local bourse.

“It is possible for the benchmark index to hit 1,700 or surpass that level if the positive momentum continues.”

The research house is looking at 1,702 for immediate resistance.

“If it drops, it will unlikely be below 1,600,” he told Bernama here.

The week started on a firm footing with further window dressing, driving the FBM KLCIinto an upward momentum with a break in between for Christ­mas on Tuesday, and continuing the momentum before hitting a record high for the year at 1,686.7 intraday on Friday.

However, it retreated and ended the day at a new all time high of 1,681.33, surpassing the 1,675.69 recorded on november 1, 2012.

Among corporate announce­ments during the week was the conditional takeover offer by tycoon Tan sri syed Mokhtar Al-Bukhary to minority share­holders for shares he does not own in Tradewinds (M) Bhd (Tradewinds) for RM9.30 each.

The offer was via his privately-owned vehicles Perspective land Bhd, Kelana Ventures Bhd, seaport Terminal (Johor) Bhd and acara Kreatif Bhd (joint offerors).

It was reported that the offer represented RM1.55 or a 20 per cent premium over Tradewinds’ last traded price of RM7.75.

The joint offerors directly hold 45.13 per cent of Tradewinds’ paid-up capital with Perspective lane, the largest shareholder with 30.04 per cent, Kelana Ventures with 8.86 per cent and seaport Terminal with 4.07 per cent.

Meanwhile, on Friday-to-Fri­day basis, the FBM KlCi in­creased 22.48 points to 1,681.33 compared to last Friday’s closing of 1,658.85. The Finance index surged 129.58 points to 15,321.18, the industrial improved 48.24 points to 2,765.56 and the Plantation advanced 121.24 points to 8,100.76.

The FBM Emas jumped 153.28 points to 11,390.45, the FBMT100 gained 153.99 points to 11,250.59, the FBM aCE added 5.56 points to 4,206.26 and the FBM 70 index was 184.03 points higher at 12,273.78.

The weekly turnover declined to 2.92 billion shares worth RM3.941 billion from 3.875 billion shares worth RM6.57 billion the week before. — Bernama