KL SHARES PRICES TO SEE UPWARD TREND NEXT WEEK
KUALA LUMPUR, Feb 2 (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 surpass the 1,300
points level, backed by follow-through buying on selected
index-linked counters, especially those related to plantation and
finance stocks, a dealer said.
He said the rise could also be boosted by the anticipated
Chinese New Year "Yam Seng" rally as well as expectations of the
general election being called in March.
He said the KLCI, which appeared to have been underperforming in
recent days in reaction to the slowdown in the U.S. economy, could
make a positive comeback as investors set aside worries about the
U.S. economy following the Federal Reserve's decision to cut its
rates by another 50 basis points on Wednesday.
The dealer expected further rate cuts at the Fed's next
scheduled meeting in March and beyond, and felt the key rate could
drop to as low as 2 percent this year.
"Overall, sentiment should remain positive next week, but
trading may turn quiet again in the latter part of the week ahead of
the long holiday break," the dealer said. Chinese New Year is
celebrated on Thursday and Friday.
"However, we feel that Bursa Malaysia is still modestly valued
and there is much more on the upside in the near future based on the
country's strong economic fundamentals and further reduction in the
U.S interest rate, and I think that it will not be impossible for
the KLCI to surpass 1,400 points next week and reach the 1,500
points level in a few months.
"The strengthening of the ringgit against the U.S. dollar and
the anticipated Yam Seng rally will help lift the market. It has
become a tradition (for the market to rise ahead of the Chinese New
Year)."
The ringgit is trading at RM3.23 per U.S. dollar.
On a week-to-week basis (Friday this week was a holiday)), the
KLCI went down 12.15 points to 1,393.25 on Thursday, the Industrial
Index lost 38.76 points to 2,949.65 and the Finance Index dropped
52.3 points to 10,602.20.
Of the FTSE-BM Index series, the FBMEmas fell 138.91 points to
9,418.54 and the FBM30 decreased 133.25 points to 9,110.69.
The FBM2BRD fell 22.35 points to 6,478.55 and the FBM-MDQ was
81.76 points lower at 5,711.21.
Total volume for the week depreciated to 3.103 billion shares
valued at RM6.643 billion from 5.134 billion shares valued at
RM9.647 billion last week.
Volume on the Main Board declined to 1.903 billion units worth
RM6.019 billion from 3.095 billion units worth RM10.842 billion
previously.
Second Board volume fell to 291.296 million shares worth
RM333.256 million from 435.744 million shares valued at RM388.301
million last Friday.
Mesdaq's volume eased to 359.008 million units valued at
RM212.919 million from 443.934 million units valued at RM264.948
million previously.
Call warrants went down to 549.896 million shares worth RM77.294
million from 1.159 billion shares valued at RM201.547 million last
week.
Direct business deals declined to 200.834 million units valued
at RM262.626 million from 327.915 million units worth RM446.122
million previously. -- BERNAMA
AFH SIV
02/02/2008 02:12 PM
KUALA LUMPUR, Feb 2 (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 surpass the 1,300
points level, backed by follow-through buying on selected
index-linked counters, especially those related to plantation and
finance stocks, a dealer said.
He said the rise could also be boosted by the anticipated
Chinese New Year "Yam Seng" rally as well as expectations of the
general election being called in March.
He said the KLCI, which appeared to have been underperforming in
recent days in reaction to the slowdown in the U.S. economy, could
make a positive comeback as investors set aside worries about the
U.S. economy following the Federal Reserve's decision to cut its
rates by another 50 basis points on Wednesday.
The dealer expected further rate cuts at the Fed's next
scheduled meeting in March and beyond, and felt the key rate could
drop to as low as 2 percent this year.
"Overall, sentiment should remain positive next week, but
trading may turn quiet again in the latter part of the week ahead of
the long holiday break," the dealer said. Chinese New Year is
celebrated on Thursday and Friday.
"However, we feel that Bursa Malaysia is still modestly valued
and there is much more on the upside in the near future based on the
country's strong economic fundamentals and further reduction in the
U.S interest rate, and I think that it will not be impossible for
the KLCI to surpass 1,400 points next week and reach the 1,500
points level in a few months.
"The strengthening of the ringgit against the U.S. dollar and
the anticipated Yam Seng rally will help lift the market. It has
become a tradition (for the market to rise ahead of the Chinese New
Year)."
The ringgit is trading at RM3.23 per U.S. dollar.
On a week-to-week basis (Friday this week was a holiday)), the
KLCI went down 12.15 points to 1,393.25 on Thursday, the Industrial
Index lost 38.76 points to 2,949.65 and the Finance Index dropped
52.3 points to 10,602.20.
Of the FTSE-BM Index series, the FBMEmas fell 138.91 points to
9,418.54 and the FBM30 decreased 133.25 points to 9,110.69.
The FBM2BRD fell 22.35 points to 6,478.55 and the FBM-MDQ was
81.76 points lower at 5,711.21.
Total volume for the week depreciated to 3.103 billion shares
valued at RM6.643 billion from 5.134 billion shares valued at
RM9.647 billion last week.
Volume on the Main Board declined to 1.903 billion units worth
RM6.019 billion from 3.095 billion units worth RM10.842 billion
previously.
Second Board volume fell to 291.296 million shares worth
RM333.256 million from 435.744 million shares valued at RM388.301
million last Friday.
Mesdaq's volume eased to 359.008 million units valued at
RM212.919 million from 443.934 million units valued at RM264.948
million previously.
Call warrants went down to 549.896 million shares worth RM77.294
million from 1.159 billion shares valued at RM201.547 million last
week.
Direct business deals declined to 200.834 million units valued
at RM262.626 million from 327.915 million units worth RM446.122
million previously. -- BERNAMA
AFH SIV
02/02/2008 02:12 PM
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