Monday July 16, 2012
M'sian stocks likely to continue uptrend this week
KUALA LUMPUR: THE FTSE Bursa Malaysia KLCI (FBM KLCI) is likely to continue its uptrend this week, lifted by external sentiment, which will encourage investors to increase their risk appetite, dealers said.
They said the local bourse might continue its positive momentum on rising expectations of more central banks adopting monetary stimulus policies to counter worries about fading global economic activities following dramatic interest rate cuts in Brazil and South Korea
Vice president and head of retail research of Affin Investment Bank, Dr Nazri Khan, said investors also expected the US economy to improve in the belief that the Federal Reserve would adopt a more aggressive interventionist stance to counter any negative economic data and this was expected to lift sentiment.
“These were signs based on last Wednesday's Federal Open Market Committee minutes that the US central bank would deliver more quantitative easings if the economy deteriorates further,” he told Bernama.
On the home front, Nazi said: “We see two sectors plantation and finance pushing FBMKLCI higher by 0.4% last week.
The plantation Index rose 1.1% and Finance Index increased 1% week-on-week.”
On a Friday-to-Friday basis, the benchmark FTSE Bursa Malaysia KLCI rose 1,626.38 from 1,620.55. It touched a new high at 1,629.45 on Wednesday.
The Finance Index rose 162.93 points to 14,600.65 from 14,437.72 last Friday. The Industrial Index fell 15.05 points to 2,856.91 from 2,871.96 last week. The Plantation Index soared 62.75 points to 8,819 from 8,757.17 last Friday. The FBM Emas Index surged 41.18 points to 11,127.43 from 11,086.25 previously.
The FBM ACE Index went down 60.81 points to 4,338.36 from 4,399.17. The FBM Mid 70 Index added 54.75 points 12,237.80 from 12,183.05. The FBM 100 Index climbed 41.06 points 10,945.55 from 10,904.49 previously.
The weekly volume increased to 6.309 billion shares worth RM8.618bil from 5.671 billion shares worth RM7.734bil last week.
Main market volume advanced 4.484 billion shares worth RM8.305bil from 3.603 billion shares worth RM7.427bil. Volume on the ACE market fell to 1.284 billion shares worth RM222.993mil from 1.36 billion shares worth RM185.529mil last week.
Warrants fell to 520.941 million units valued at RM82.652mil from 694.301 million units worth RM113.357mil previously. - Bernama