ENDING ON HIGH
BURSA Malaysia is expected to see an upswing this week as fund managers pour money into the market and balance their portfolio ahead of the new year, say analysts.
BURSA Malaysia is expected to see an upswing this week as fund managers back from long holidays are expected to carry on with portfolio balancing before the year ends.
Analysts said fund managers would be looking to invest more in the market as they continue with their window-dressing activities, which would help lift the stock market.
Media Prima Bhd, Tenaga Nasional Bhd, Sime Darby Bhd, Axiata Group Bhd and Serba Dinamik Holdings Bhd are among stocks that had attracted large fund managers like Morgan Stanley, Employees Provident Fund, Permodalan Nasional Bhd and Retirement Fund Inc (KWAP) in recent weeks.
The changes in shareholdings of these stocks were also active on Bursa Malaysia yesterday as the fund managers were keen to improve their portfolio performance.
Panel of Malaysian Association of Technical Analysts Nazarry Rosli said the stock market was set to perform better with fund managers eyeing new opportunities and implementing a new portfolio balancing.
The FTSE Bursa Malaysia KLCI (FBM KLCI) closed 0.25 points, or 0.01 per cent, lower to 1,759.99 yesterday, down from 1760.24 on Friday.
Meanwhile, Affin Hwang Investment Bank Bhd senior director and head of equity capital markets Arvin Chia said although there was no massive windowdressing towards the year-end during the past few years, the benchmark index always had the tendency of ending on a high note due to window-dressing.
Bursa Malaysia was expected to carry its trading momentum to the first quarter of next year, he added.
Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the FBM KLCI was likely to stage a lastminute rebound, given the index was still seen in an oversold position.
“The recent tax reform bill in the United States indicated that the global growth next year should be well supported despite the Federal Reserve’s plan to remove the accommodation policy gradually.
“We also opined that the ringgit is much undervalued, which would provide motivation for foreign funds to return back into our stock market,” he said.