Monday June 4, 2012
Rising outflow of funds likely to ease M'sian market rally
KUALA LUMPUR: RISING outflow of institutional funds is expected to ease the rally on the local bourse with the FBM KLCI trending lower towards the 1,560-1,550 points support level.
Affin Investment Bank head of retail Research Dr Nazri Khan said weaker commodities, falling ringgit, eurozone fears, absence of China's monetary stimulus and disappointing global economic data were expected to dampen buying sentiment on Bursa Malaysia this week.
On the domestic front, Nazri expected the market to start pricing in political concerns ahead of the 13th general election after the launch of Felda's prospectus.
For the week just ended, the market was mostly higher, despite cautious sentiment regionally due to uncertainty in the eurozone and weak data from the United States.
On a Friday-to-Friday basis, the FBM KLCI added 22.47 points to 1,573.59.
The Finance Index earned 203.62 points to 14,028, the Industrial Index rose 44.79 points to 2,755.48 and the Plantation Index advanced 152.06 points to 8,329.78.
The FBM Emas Index jumped 147.69 points to 10,729.15, the FBM ACE Index shed 51.86 points to 4,224.84, the FBM Mid 70 Index surged 152.35 points to 11,649.35 and the FBM T100 Index improved 148.27 points to 10,557.29.
Weekly volume fell to 4.3 billion shares, valued at RM7.03bil, from 4.35 billion shares, worth RM6.14bil, registered last week.
Main Market turnover advanced to 3.03 billion shares, worth RM6.85bil, from 2.87 billion shares, valued at RM5.92bil, recorded last week.
Volume on the ACE Market decreased to 775.57 million shares, worth RM112.84mil, from 958.33 million shares, valued at RM140.44mil, transacted previously.
Warrants decreased to 483.14 million units, worth RM65.17mil, against last week's 497.66 million units valued at RM64.92 mil. - Bernama