BERNAMA
Share prices on Bursa Malaysia are expected to see an upward trend next week with the benchmark Kuala Lumpur Composite Index (KLCI) likely to stay above the 1,300-point level, helped by follow-through buying on selected heavyweights and index-linked counters, an analyst said.
He said with major impetus on the domestic and external fronts - such as the higher crude oil prices, Malaysias improving global competitiveness ranking and the International Monetary Funds comment that the worst of financial crisis is over - will provide positive direction for investors seeking selected key counters such as the plantation and finance-related stocks.
"Although the local market has not been performing well for the past few days of the week, it still remains attractive to investors, helped by these developing news, particularly on the latest global competitiveness ranking for Malaysia.” He said the improvement in Malaysia’s competitiveness ranking from 23 last year to 19 this year out of 55 countries augurs well for the country’s efforts to lure foreign direct investment (FDI).
"It clearly indicates that Malaysia is a competitive and attractive destination for FDI,” he added.
In releasing the rankings last Thursday, the IMD, a leading global business school based in Switzerland, said this was Malaysia’s best ranking over the last three years since 2005 when it was ranked 25th, 22nd in 2006 and 23rd last year.
Apart from that, the analyst also said the rise in plantation, oil & gas and steel stocks, buoyed by the current crude oil prices and the liberalisation of the steel market, will help cushion any downside risks at the moment.
"This (higher oil prices) will initially provide strong support and drive players to enter the market in full force,” he felt.
Oil prices surged to a record peak near US$127 per barrel early this week after OPEC member Iran said it is studying a plan to cut output.
The analyst also said that rotational play, particularly on small and mid cap stocks, will continue to lend support to the market.
"Overall, sentiment should remain positive next week, but trading may be quiet in the early part of the week following a long weekend holiday break,” he added.
The market will be closed on Monday for Wesak Day.
On the downside, the analyst expects the immediate support to be at the 1,250 points level.
On Friday-to-Friday basis, the KLCI went up 15.5 points to 1,300.67 from last week Friday’s 1,280.35, while the Industrial Index fell 41.4 points to 2,741.27 and the Finance Index rose 27.8 points to 10,046.9.
Share prices on Bursa Malaysia are expected to see an upward trend next week with the benchmark Kuala Lumpur Composite Index (KLCI) likely to stay above the 1,300-point level, helped by follow-through buying on selected heavyweights and index-linked counters, an analyst said.
He said with major impetus on the domestic and external fronts - such as the higher crude oil prices, Malaysias improving global competitiveness ranking and the International Monetary Funds comment that the worst of financial crisis is over - will provide positive direction for investors seeking selected key counters such as the plantation and finance-related stocks.
"Although the local market has not been performing well for the past few days of the week, it still remains attractive to investors, helped by these developing news, particularly on the latest global competitiveness ranking for Malaysia.” He said the improvement in Malaysia’s competitiveness ranking from 23 last year to 19 this year out of 55 countries augurs well for the country’s efforts to lure foreign direct investment (FDI).
"It clearly indicates that Malaysia is a competitive and attractive destination for FDI,” he added.
In releasing the rankings last Thursday, the IMD, a leading global business school based in Switzerland, said this was Malaysia’s best ranking over the last three years since 2005 when it was ranked 25th, 22nd in 2006 and 23rd last year.
Apart from that, the analyst also said the rise in plantation, oil & gas and steel stocks, buoyed by the current crude oil prices and the liberalisation of the steel market, will help cushion any downside risks at the moment.
"This (higher oil prices) will initially provide strong support and drive players to enter the market in full force,” he felt.
Oil prices surged to a record peak near US$127 per barrel early this week after OPEC member Iran said it is studying a plan to cut output.
The analyst also said that rotational play, particularly on small and mid cap stocks, will continue to lend support to the market.
"Overall, sentiment should remain positive next week, but trading may be quiet in the early part of the week following a long weekend holiday break,” he added.
The market will be closed on Monday for Wesak Day.
On the downside, the analyst expects the immediate support to be at the 1,250 points level.
On Friday-to-Friday basis, the KLCI went up 15.5 points to 1,300.67 from last week Friday’s 1,280.35, while the Industrial Index fell 41.4 points to 2,741.27 and the Finance Index rose 27.8 points to 10,046.9.
~~Bernama~~
Bursa88 Comment:
KLCI likely to test its resistance level at 1350 soon. Market expects a rally next week after the consolidated for a while, despite profit taking in steel stocks, certain bluechips are still in favour of investors in watchlist such as ZELAN, KENCANA, KNM, etc.
0 comments:
Post a Comment