KUALA LUMPUR: Trading on Bursa Malaysia is expected to be subdued with intermittent short-term profit taking but the key barometer will be well supported at the 1,860 points level, a dealer said.
Vice-president/head of Retail Research Dr Nazri Khan said given the improved external market, foreign institutional funds were expected to switch their focus from outperformed markets like Malaysia and Philippines to more under performed markets such as India, Brazil and Taiwan.
“While we expect sideways short term profit-taking to continue at the 1,860 to 1,870 resistance level, eventually the local market should trend higher, pricing in reduced risk premium as the US and European economy recover and European Central Bank (ECB) monetary stimulus takes off,” he told Bernama.
He said more global funds positioning was expected after the ECB moved aggressively to boost a tepid economic recovery and ward off the threat of deflation by cutting its main interest rate to a record low at 0.15 per cent.
On the domestic front, he said rising economic momentum, improved external situation, rising exports and stronger private investment in Economic Transformation Programme (ETP) would yield positive results and improve Malaysia’s fundamentals.
“Stronger external front and diminishing macro risk should help accelerate Malaysia’s gross domestic product (GDP) growth on a stronger contribution from net exports and rising commodity prices to offset the slower expansion in domestic demand,” he said.
“Our top ten featured stocks for quick play include IJM, MRCB, WCT, Mudajaya, Muhibah, Kimlun, Pintaras, Mitra, Benalec and Melati,” he added.
For the week just-ended, the Finance Index fell 195.23 points to 17,187.39, the Industrial Index decreased 30.02 points to 3,160.2 while the Plantation Index increased 64.87 points to 9,139.33.
The FBM Emas Index erased 47.63 points to 12,898.12, the FBMT100 Index shed 52 points to 12,543.27, the FBM Ace added 10.43 points to 6,591.76 and the FBM 70 gained 19.96 points to 14,065.19.
Weekly turnover fell to 6.31 billion shares, worth RM8.01 billion, from last week’s 7.56 billion shares worth RM13.62 billion.
Main market volume was down at 5.29 billion shares, valued at RM8.38 billion, from 5.96 billion shares, valued at RM13.21 billion, recorded last week.
Warrants turnover depreciated to 181.21 million units, worth RM25.87 million, from 251.64 million units, worth RM46.38 million, recorded previously.
The ACE market volume decreased to 816 million shares, valued at RM198.27 million, from 1.21 billion shares, valued at RM332.67 million, registered last Friday. — Bernama