Share prices to continue bullish trend this week

SHARE prices on Bursa Malaysia are expected to remain firm this week, driven by strongerthan-expected Chinese trade data and optimism that the global economy is on its way to recovery, dealers said.

Affin Investment Bank Vice-President and Head of Retail Research Dr Nazri Khan said with the recent encouraging US economic data, easing Eurozone sovereign debt tensions and expectation of positive fourth-quarter earnings, the regional equity indices including the FBMKLCI, was expected to hit fresh cyclical highs in the near-term.

“The next major resistance is pegged between 1,700 and 1,720 points level while major support stood between 1,670 and 1,660 points,” he told Bernama.

Meanwhile, Nazri said the one-off rally held on Saturday would only have minimal impact on the stock market.

“Besides, we have enough catalyst and momentum in the economy now both from an investment and stock market perspective with the FBMKLCI at all time high and on the verge of breaking the 1,700 points psychological barrier.

“Ultimately, we believe the dissolution of Parliament and the 13th General Election polling date is more important than the rally as the two factors would ultimately impact market sentiment and business confidence,” he added.

On the local front, some of the newsflow that will excite the bourse includes AirAsia Bhd which plans to launch an Indian airline, Lingui Development Bhd’s proposed privatisation by Samling Group and rumours that Malaysia Airports and YTL Corp are bidding for the £1 billion Stansted Airport.

Meanwhile, on a Friday-to-Friday basis, the FBM KLCI declined 9.88 points to 1,682.70 compared with last Friday’s 1,692.58.

The Finance Index improved 58.24 points to 15,399.60 but the Industrial Index fell 16.47 points to 2,797.87 and the Plantation Index lost 105.86 points to 8,149.33.

The FBM Emas Index decreased 5.02 points to 11,439.30, the FBMT100 slipped 55.85 points to 11,284.80, the FBM 70 Index edged down 14.09 points to 12,425.51 while the FBM ACE Index rose 19.06 points to 4,278.83.

Weekly turnover surged to 5.94 billion units, valued at RM7.653bil, from last week’s 4.093 billion shares, worth RM6.02bil.

The Main Market volume improved to 4.487 billion shares, worth RM7.462bil, from 3.187 billion units, valued at RM5.892bil, transacted last week.

The ACE market volume rose to 1.05 billion shares, worth RM109.776mil, compared with 659.884 million shares, worth RM126.779mil, recorded last week.

Warrants were up at 388.452 million shares, valued at RM47.092mil, versus 239.007 million units, valued at RM27mil, recorded previously. - Bernama