FBM KLCI set to extend winning streak

FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to extend its
record-setting-run next week on positive external and internal
sentiment, dealers said.


Vice-President and Head of Retail Research of Affin Investment
Bank Dr Nazri Khan said the local market would continue to remain
overbought and trend higher.



He based his optimism on China's policymakers further easing
monetary policies, the probability of the European Central Bank
reducing the debt loads of Eurozone governments and United States
policymakers addressing the impact of fiscal cliff.



"On the local front, three factors will drive the index higher
namely the upcoming festive Ramadan-related spending (consumer), Budget
2013 (construction) and the recovery in the local resource stocks
(plantation and oil gas)," he said.






He said the fact that Bank Negara maintained its dovish policy to support the economy would be positive for the stock market.


Nazri also said there was a good possibility of major inflow of
foreign funds in light of the upcoming listing of Integrated Healthcare
Holding (IHH), touted to be among the largest global initial public
offering, after Facebook and Felda Global Venture Holdings, this year.


The local broad market will also get support from the technical
momentum following the ninth-straight weekly profitable session,
collecting a respectable 114 points or 7 per cent gain, with the
FBMKLCI hitting its best level in history and European/American shares
soaring to four-month/two months high, respectively.


"Our bullish view is supported by the recent upturn in risk-on
assets such as gold, silver and Australian Dollar may be a sign of more
optimism among global traders.



He said the fact that the broad market does not seem too concerned
over weak global data suggested a runaway market in the offing and
hence more upside at least in the near-term.



On a Friday-to-Friday basis, the benchmark FTSE Bursa Malaysia KLCI
closed 16.62 points higher at 1,643 points, after hitting a historic
high of 1,645 points on Wednesday.



The Finance Index rose 90.56 points to 14,691.21, the Industrial
Index increased 17.71 points to 2,874.62, the Plantation Index advanced
45.01 points to 8,864.93 and the FBM Emas Index soared 130.04 points to
11,257.47 from last Friday.



The FBM ACE Index erased 37.76 points to 4,300.6, the FBM Mid 70
Index surged 220.08 points to 12,457.88 and the FBM 100 Index ended the
week 128.1 points higher at 11,7073.65.



The weekly volume decreased to 5.916 billion shares, worth RM8.29
billion, from 6.309 billion shares, worth RM8.618 billion, registered
last week.



Main market volume was down slightly to 4.006 billion shares,
valued at RM7.902 billion, from 4.484 billion shares, worth RM8.305
billion, transacted previously.


Volume on the ACE market increased to 1.367 billion shares, worth
RM301.518 million, from 1.284 billion shares, valued at RM222.993
million, last week.


Warrants rose to 522.619 million units valued at RM79.566 million
from last week's 520.941 million units valued at RM82.652 million. --
BERNAMA