Bursa likely to stage more solid rebound next week

by **Cals** Mon 25 Nov 2013, 01:53

Published: Saturday November 23, 2013 MYT 12:26:00 PM
Updated: Saturday November 23, 2013 MYT 12:30:10 PM
Bursa likely to stage more solid rebound next week

KUALA LUMPUR Shares on Bursa Malaysia are likely to stage a more solid rebound next week driven by Moody's upgrade of Malaysia's ratings and positive regional strength.
Affin Investment Bank Vice President and Head of Retail Research Dr Nazri Khansaid Bursa and financial stocks in particular should find support from Moody's upgrade on the sovereign credit outlook.

The outlook is driven by improved prospects for fiscal consolidation, public financereform as well as continued macroeconomic stability in the face of external headwinds brought by price stability and a credible central bank.

"We believe the Moody's upgrade could be the logical time for the finance relative ratio to turn up, leading the FTSE Bursa Malaysia KLCI (FBM KLCI)
higher," he told Bernama.

Nazri said the market also looks set to rise following Japanese liquidity pump priming and tame data from the US inflation figures which would offset worries that the Federal Reserve could reduce stimulus sooner than expected.

Three major news items may catalyse Bursa the Malaysian consortium of SP Setia,Sime Darby and EPF securing a RM4.093 billion facility for the development and land refinancing of the Battersea project in London; the Selangor government maintaining its earlier offer to take over Puncak Niaga Holdings Bhd's water assets; andPrestariang Bhd's aggressive maiden venture into the oil and gas sector to turn into a RM1 billion company within the next three years.

On the technical front, Nazri said the local market is likely to sustain gains going forward with immediate resistance at 1,800 while immediate support at 1,760 levels would immediately cushion any deeper profit taking.

Over the past week, Bursa dipped lower on profit-taking dragged by the cautious release of the latest US Federal Reserve meeting minutes and the Organisation for Economic Cooperation and Development's slower global growth forecast.

The market also saw a new listing on Bursa Malaysia with Berjaya Auto Bhd making its debut on Bursa Malaysia on Monday at RM1.55 for an 85-sen premium over its offer price of RM0.70.

On a Friday-to-Friday basis, the FBM KLCI ended 4.65 points higher at 1,794.52.

The Finance Index dropped 48.19 points to 16,444.24, the Industrial Index added 41.33 points to 3,127.99 and the Plantation Index rose 126.9 points to 8,807.23.

The FBM Emas Index increased 19.11 points to 12,494.75, the FBMT100 Index was 23.38 points higher at 12,220.27, and the FBM70 dipped 6.89 points to 14,257.35, with the FBM Ace giving up 104.51 points to 5,636.21.

Weekly total turnover declined to 8.94 billion shares valued at RM10.58 billion from 9.872 billion shares worth RM9.515 billion last week.

Main market volume decreased to 6.997 billion units valued at RM10.2 billion from 7.134 billion units worth RM8.94 billion previously.

Warrants turnover added to 204.35 million valued at RM21.31 million from 201.998 million shares worth RM25.127 million last Friday.

The ACE market volume slipped to 1.64 billion units valued at RM327.67 million from 2.476 billion units worth RM1.095 million previously. - Bernama