Bullish momentum to continue

The market rebounded last week on stronger economic growth but trading volume was still relatively low as market confidence is still weak. The market was also uncertain over mixed global markets performances.

Malaysia’s GDP for the second quarter rose 5.8 per cent from last year, beating analysts’ median estimates of 5.4 per cent according to Bloomberg report. The FBM KLCI increased 0.5 per cent in a week to 1,776.22 points last Friday.

Trading volume remained firm last week as compared to the volume two weeks ago. The average daily trading volume was firm 1.7 billion shares last week.

The average daily trading value was also firm at RM1.9 billion. Total market capitalization increased RM22.1 billion to RM1,851.2 billion. Last week, local institutions were buying while local retail and foreign institutions selling. Net buy from local institutions was RM175 million and net sells from local retail and foreign institutions were RM127 million and RM48 million respectively.

In the FBM KLCI, gainers beat decliners two to one. The top gainers for the week were Genting Malaysia Bhd (5.7 per cent in a week to RM6.14), Westports Holdings Bhd (4.5 per cent to RM3.75) and RHB Capital Bhd (3.6 per cent to RM4.95).

The top decliners were KL Kepong Bhd (1.8 per cent to RM24.30), PPB Group Bhd (1.6 per cent to RM16.40) and Sime Darby Bhd (1.4 per cent to RM9.28). Global markets performances were mixed. In Asia, Japan and Singapore ended lower while the Chinese markets (including Hong Kong) rose.

The US market fell last week while most European markets closed higher.

The US dollar gained some strength against major currencies. The US dollar index rose from 93.1 points two weeks ago to 93.4 points last Friday. The Malaysian ringgit was firm at RM4.29 to a US dollar.

Commodities market were generally bearish. Gold price (COMEX) declined 0.4 per cent in a week to US$1,290.30 an ounce. However, Crude oil (Brent) increased 1.6 per cent in a week to US$52.86 per barrel despite a bearish start.