Weekly Outlook Market to range-bound with positive bias as Raya holiday mood slips in

Weekly Outlook Market to range-bound with positive bias as Raya holiday mood slips in
Business & Markets 2013
Written by Research Team of M&A Securities
Friday, 02 August 2013 17:12

KUALA LUMPUR (August 2): The market is likely to be quiet and unexciting next week due to the long Hari Raya Aidilfitri break and the school holiday, according to M&A Securities.

“The local equity market is likely to be quiet next week in view of the coming long Hari Raya Aidilfitri break.

“Added with the start of second school holiday for the year, the equity market is likely to be unexciting. This will be exacerbated by less number of global economic announcements next week with no major economies is schedule to release its 2Q13 GDP numbers,” said M&A in its research note.

It noted that Malaysia will be releasing its 2Q13 GDP numbers on 21st August and street estimates expect the quarterly growth to come in at 4.7% y-o-y, bringing 1H13 GDP to reach 4.4% and pushing the need for 2H13 GDP to increase at least 5.6% before the bottom end of 5% of BNM forecast can be reached.

“The feel-good factor in the US is likely to spill over into next week and in line with positive trading momentum pre-Hari Raya…the local market is likely to trade tight range but with upside bias.

“We would like to pre-caution, however, that trading volume and value are like to ease and this may result in increase in volatility and hence, a swing in the index.

“Notwithstanding that, the market is likely to resume its post Hari Raya trading in vengeance especially when the second quarter results season will be in full gear by then.”