KL bourse expected to rally next week

The FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to stage a rally
next week on optimism the current government will retain power
post-general election, positive reversal in commodity prices, firm
regional stock sentiment and strong performance of the ringgit
following the influx of foreign funds, a dealer said.

Affin
Investment Bank vice-president and head of retail research Dr Nazri
Khan said as of last week, Malaysia's equity market attracted RM13.1
billion of foreign funds in the open market in less than four months
compared with RM13.7 billion for the whole of 2012.

"The solid
funds inflow, especially after the polling dates were announced and
mostly parked in government linked companies (GLCs), indicates
investors confidence in the likely win of the incumbent government," he
told Bernama.

He said there could be another strong equity push in the final run-up towards the May 5 polling day.

"On
the FBM KLCI, buying momentum is likely to push the index above its
recent intraday record high of 1,718, and target the immediate
resistance of 1,750," he said.

Nazri said the local index was
also likely to get support from the firm global stock performance
fuelled by favourable US' employment data and UK's upbeat economic data
which showed the country has avoided a triple-dip recession.

He
said recent concerns over slowing growth had been offset to some degree
by expectations that the world's central banks would maintain
accommodative policy stance and governments to launch more pro-growth
policies.

Meanwhile, he said the ringgit is expected to advance
for the sixth week, the longest rally in more than three years, on
speculation that monetary easing in Japan and Europe will boost more
demand for emerging-market assets.

"Given the positive regional
sentiment, cautiously bullish election mood and expectations of a
victory for the current government in the general election, investors
are opting for GLC stocks that are well positioned for the new
government mandated business mode," he added.

On a Friday-to-Friday basis, the benchmark FBM KLCI ended 12.75 points higher to an all-time high of 1,711.29.

The market barometer also hit a record intraday high of 1718.08 on the last trading day.

The Finance Index soared 81.78 points to 15,981.77.

The Plantation Index fell 6.72 points to 8,107.82 and the Industrial Index eased 59.34 points to 2,839.30.

The FBM Emas Index gained 51.81 points to 11,678.82, FBMT100 increased 61.35 points to 11,516.60.

FBM Ace Index dropped 79.87 points to 3,970.81 and the FBM Mid 70 decreased 34 points to 12,883.64.

Weekly turnover declined to 3.79 billion shares worth RM8.22 billion from last week's 4.18 billion shares worth RM8.26 billion.

Main
market volume fell to 3.06 billion shares valued at RM8.09 billion from
3.47 billion shares valued at RM8.16 billion last week.

The ACE
market volume firmed to 571.28 million shares worth RM102.80 million
from 542.592 million shares worth RM78.377 million in the previous week.

Warrants
decreased to 151.92 million units valued at RM18.72 million against
last week's 160.79 million shares worth RM14.687 million.-- Bernama