Bursa to trend steadier on stronger regional sentiment

BURSA Malaysia is likely to trend steadier this week on robust local and United States economic data, improved risk appetite as well as stronger regional sentiment, dealers said.

Affin Investment Bank head of retail Dr Nazri Khan said investors are cautious but still optimistic that the impasse over Greece’s 130 billion euro bailout package may resolve soon to avoid the European financial system going into turmoil. Overall there are signs the global market is shrugging off the crisis in the eurozone and is slowly pricing in a more vigorous selfsustaining recovery, he told Bernama.

On the local front, Nazri said there are two major catalysts to sustain price sentiment next week in the form of rising oil prices and local bond prices (which historically have positive correlation with FBMKLCI prices).

He also said that there would be positive developments in the local bond market with Malaysian Government Securities (MGS) prices staying at relatively high levels (10y MGS and 20y MGS rose 1.8% and 2.9% respectively on Friday).

On a Friday-to-friday basis, the FBM KLCI eased 4.51 points to 1,557.15 from 1,561.66, and the Finance Index gained 4.06 points to 13,863.47. The Plantation Index fell 56.99 points to 8,821.29 and the Industrial Index climbed 0.83 of a point to 2,902.11.

The FBM Emas Index decreased 56.90 points to 10,826.86, the FBM 70 Index declined 160.28 points to 12,331.55 and the FBM Ace Index was lower by 47.81 points to 4,697.78.

Weekly volume increased to 11.968 billion shares valued at Rm10.437bil, from 11.06 billion shares worth Rm9.08bil.

Turnover on the Main Market advanced to 8.456 billion shares worth Rm9.869bil, from 7.45 billion units valued at Rm8.5bil previously.

Volume on the ACE market was higher at 2.273 billion units valued at Rm373.178mil, against 2.16 billion units valued at rm 322.42 mil. Warrants dropped to 1.198 billion units worth Rm185.548mil, from 1.43 billion shares worth Rm252.71mil transacted. - Bernama