Business

Monday February 6, 2012

M'sian stocks seen to be on uptrend this week


KUALA LUMPUR: BURSA Malaysia is expected continue its uptrend this week on fund inflows, stronger ringgit, progress in resolving the eurozone debt crisis, US economic recovery and positive global manufacturing data.

Dealers said the latest data showed the US manufacturing output grew at the strongest pace in seven months while Germany's manufacturing sector expanded for the first time in four months.

“China's manufacturing output growth is also better than expected,” a dealer said.

Dr Nazri Khan, Affin Investment Bank's head of retail research, said positive news on the eurozone debt crisis had helped boost the local market.

“We expect more positive data, suggesting that the global economy is faring much better than many had feared at the start of 2012,” he told Bernama.

Going forward, he said, this would lead to higher gains in the equity market.

“We also believe the filing of Facebook's initial public offering (IPO), potentially worth over US$5bil, to boost market sentiment especially for local technology stocks,” he said.

Nazri said several developments were also expected to sustain traders' interests this week.

“They include Petronas expansion of regassification projects in Pengerang, Lumut and Lahad Datu, talks of SapuraCrest winning the second Brazil tender from Petrobras and the return of former Proton chief executive officer Tan Sri Mahaleel Tengku Ariff as the chairman of the company.

“We also expect the hype over Felda's IPO and that of Integrated Healthcare Holding in the second quarter to boost interest in plantation and healthcare stocks,” he said.

For the week just ended, Nazri said, penny stocks were in the limelight.

“We perceived this as a good sign for the market. Smaller companies are less diversified, more dependent on the domestic economy and more sensitive to riskier traders,” he said.

On a weekly basis, the FBM KLCI advanced 17.87 points to 1,538.77, Finance Index surged 166.54 points to 13,587.31 and Industrial Index rose 79.99 points to 2,871.28.

The Plantation Index, however, lost 12.6 points to 8,737.92.

The FBM Emas Index jumped 155.46 points to 10,733.79, FBM Mid 70 Index chalked up 257.17 points to 12,406.53 and the FBM ACE Index perked up 39.89 points to 4,536.63.

Total weekly volume increased to 9.52 billion shares worth RM9.2bil from 5.58 billion shares worth RM5.08bil previous week.

The main market turnover improved to 5.29 billion units valued at RM8.54bil from 3.33 billion units valued at RM4.73bil previously.

Warrants advanced to 1.38 billion shares worth RM431.1mil from 1.28 billion shares worth RM220.38mil previous Friday.

Volume on the ACE Market rose to 1.38 billion units valued at RM224.85bil from 970.41 million shares valued at RM135.55mil previous week.

The market will be closed today and tomorrow for Prophet Muhammad's birthday and Thaipusam, respectively. Bernama

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