FBM KLCI likely to sustain bullish momentum next week

by **Cals** Mon 30 Dec 2013, 00:11

Published: Saturday December 28, 2013 MYT 11:24:00 AM
Updated: Saturday December 28, 2013 MYT 11:54:32 AM
FBM KLCI likely to sustain bullish momentum next week

KUALA LUMPUR: The FTSE Bursa Malaysia KLCI's (FBM KLCI) bullish momentum is expected to sustain next week boosted by fund accumulation activities, a dealer said.
Affin Investment Bank Bhd Vice-President and Head of Retail Research Dr Nazri Khan said the local bourse is expected to continue to rise as traders continue to garner position before the new year.
"Investors anticipate next year to be a good year for the Malaysian economy as well as the global economy," he told Bernama.

He said the bullish sentiment was sparked by the economic recovery in the US and Europe.

He said to date the US Dow Jones index has gained 27 per cent this year, the strongest performance since 1997, and the solid performance is forecast to continue next year. "The spillover effect is expected to benefit US trading partners including Malaysia," he said.

For the week just ended, the market was closed on Wednesday for Christmas.

Nevertheless, the FBM KLCI managed to post a strong performance in the last day of trading of the holiday-shortened week to set a fresh all-time high and intra-day high of 1,861.06 and 1,862.63 respectively.

Nazri said the momentum is expected to continue next week with a new support level of 1,850 and resistance level of 1,880.

He also expressed confidence that the market barometer will end the year above 1,860 before it closes on Wednesday for new year.

On a Friday-to-Friday basis, the FBM KLCI rose 20.71 points to 1,861.06, the Finance Index advanced 67.59 points to 16,900.90, the Industrial Index improved 56.58 points to 3,156.16 but the Plantation
Index fell 144.34 points to 8,881.22.

The FBM Emas Index rose 118.61 points to 12,815.83, the FBMT100 Index perked 125.03 points to 12,552.32, the FBM 70 increased 83.67 points to 14,080.81 while the FBM Ace lost 5.83 points to 5,622.86.

Weekly total turnover fell to 3.93 billion shares worth RM3.78 billion from 5.36 billion shares worth RM7.6 billion last week.

Main market volume declined to 2.85 billion shares valued at RM3.54 billion from last week's 4.2 billion shares valued at RM7.26 billion.

Warrant turnover decreased to 120.59 million units worth RM14.58 million from 200.09 million units worth RM33.69 million last Friday. The ACE market volume rose to 943.23 million shares worth RM150.29 million from 901.113 million shares worth RM269.855 million previously.
Meanwhile the FTSE Bursa Malaysia KLCI (FBM KLCI) futures contracts on Bursa Malaysia Derivatives are expected to trend higher next week driven by the firmer cash market.

Khan, said the local bourse is expected to be boosted by fund accumulation activities with investors taking position ahead of the new year and anticipating a bright economic outlook for the upcoming year.
"The market was slightly overboard in the week just ended but still can maintain overboard for a longer period," he told Bernama.

On a Friday-to-Friday basis, December 2013 rose 31 points to 1,863.5, January 2014 and June 2014 added 32 points each to 1,868.5 and 1,860 respectively, and March 2014 garnered 29.5 points to 1,866.

Turnover expanded to 53,221 lots from 43,878 lots recorded last week, while open interest decreased to 60,482 contracts from 66,353 contracts previously.

The benchmark FBM KLCI ended the week at an all-time high of 1,861.06, up 16.96 from the previous week. - Bernama