FBMKLCI likely to test 1,600-point level

Bursa Malaysia is likely to trade higher next week with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) expected to test the 1,600-point level, analysts said.

They also said near-term sentiment will hinge on the soon-to-be-released financial sector master plan, results of the Economic Transformation Programme tender outs and banking mergers.

Elsewhere, Portugal's sovereign debt, the US debt ceiling, Thailand's new regime's policies and China's interest rate cycle will also be on the investor radar.

TA Securities senior technical analyst Stephen Soo said the market might see some rotational players with property and oil and gas stocks expected to catch investors attention.

"The market may hover between the 1,576-1,601 points level next week," he told Bernama.

The local bourse is expected to perform well in tandem with its regional peers as the global economy is at its recovery stage, Affin Investment Bank head of retail research, Dr Nazri Khan said.

He pointed out that the composite index of Indonesia, Malaysia and the Philippines touched an all-time high last week, with Korea and Thailand close.

"This bolsters our belief that the softness seen over the last two months has ended with a new leg of an upcycle having started," he said.

Nazri said the bullish performance of Wall Street also lent support to the KLCI, with the FTSE All-World Equity Index hitting its best level since June 1 and the MSCI Asia Pacific recording the best weekly price in three months.

The biggest near-term driver for local sectors would come from Japan which is recovering from the March quake faster than most economists expected, he added.

Stocks in the limelight are banking and oil gas such as BIMB, AFG, Petronas Dagangan and Sapura Crest due to short term holding strategies.

The benchmark FBM KLCI traded range bound throughout the week and ended it with a new high of 1,594.74 on Friday.It had recorded another new high at 1,591.34 on Wednesday.

On a Friday-to-Friday basis, the FBM KLCI rose to 1,594.74 from 1,582.94 and the Finance Index rose 11.22 points to 15,038.74.

The Plantation Index fell 3.73 points to 7,909.98 and the Industrial Index added 24.72 points to 2,882.62.

The FBM Emas Index increased 14.18 points to 10,934.33, the FBMT100 gained 17.62 points to 10,708.18 and the FBM Ace Index gained 13.98 points to 4,180.65.

The weekly volume rose to 4.66 billion shares valued at RM8.63 billion from the 4.52 billion shares valued at RM8.27 billion last week.

The main market turnover fell to 3.52 billion shares worth RM8.38 billion from 3.6 billion shares worth RM8.12 billion previously.

Volume on the ACE market was lower at 477.78 million units valued at RM76.28 million against 691.36 million units valued at RM113.23 million previously.

Warrants improved to 640.58 million shares worth RM168.95 million from the 221.011 million shares worth RM33.15 million last Friday. -- Bernama