BURSA MALAYSIA: Share Prices Likely To Stay Range-bound Next Week

KUALA LUMPUR, Nov 15 (Bernama) -- Share prices on Bursa Malaysia are likely to stay range-bound again next week as investors are expected to be wary of the market despite the stimulus package announced by the government, analysts said.

They said despite an oversold market, which offered opportunities in terms of cheaper quality stocks, investors were expected to stay cautious and wait for more positive signals from the US as well as Malaysian governments before taking any action.

An analyst said some bargain hunting was expected next week as Bursa Malaysia has plenty of quality underpriced stocks up for grabs.

"The announcement of stimulus package for private sector should spur interest among businessmen to be more proactive amid global financial crisis," he said.

The government on Friday announced pre-emptive measures for the private sector to cushion the impact of the global economic slowdown on Malaysia's trade and industry sectors.

It included an automatic issuance of manufacturing licences and full import duty exemption on raw materials and intermediate goods.

The analyst said the move would likely boost related industries in the coming weeks.

He said the benchmark Kuala Lumpur Composite Index (KLCI) was expected to trade between the 850 and 910 next week.

"Interests in heavyweights, particularly plantation and financial and banking stocks, are expected," he said.

For the whole week just ended, market was traded range-bound as investors remained cautious. Some, however, took the opportunity to buy cheap quality stocks.

On a Friday-to-Friday basis, the KLCI was lower by 12.30 points at 881.65.

The Industrial Index edged up 0.74 point to 2,118.25, the Finance Index lost 164.51 points to 6,760.93 while the Plantation Index jumped 61.99 points to 3,872.82.

The FBMEmas went down by 69 points to 5,805.39, the FBM30 dropped 94.88 points to 5,696.12, FBM2BRD went up 78.64 points to 4,449.31 and the FBM-MDQ increased 22.77 points to 3,489.98.

Total volume for the week eased to 4.099 billion shares worth RM4.759 billion from 4.456 billion shares worth RM5.504 billion last Friday.

The Main Board volume slipped to 3.594 billion units valued at RM4.649 billion from 3.839 billion shares valued at RM5.398 billion previously.

Volume on the Second Board edged up to 287.284 million shares worth RM80.035 million compared to Friday's close of 280.185 million shares worth RM68.857 million last Friday.

The Mesdaq Market volume dropped to 150.371 million units worth RM27.254 million from 236.010 million units worth RM33.333 million previously.

Call warrants also declined to 66.857 million shares worth RM2.739 million from 101.650 million shares worth RM3.492 million recorded last Friday.

Direct business deals, however, surged to 289.194 million units worth RM177.062 million from 137.312 million units worth RM130.225 million previously.

-- BERNAMA

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