KL bourse expected to be moderately bullish

Bursa Malaysia is likely to be moderately bullish next week with external factors swaying the market.


Affin Investment Bank's head of retail, Dr Nazri Khan, said the benchmark FBM KLCI was expected to test the 1,580-point level.


He said that eventually, the local bourse would likely ride on Wall
Street's performance and the euro zone rally, barring any further
downgrades by major rating agencies.


The Greek second bailout deal, in hopes to prevent the region's
debt crisis from deepening, and the last-minute deficit-reduction deal
between President Barack Obama and US top lawmakers have eased fears and
boosted investor sentiment across the board.





"We see the risk environment has improved although the local sentiment has been on a mixed mode.



"However, the ringgit performed strongly and the Asian Dollar Index,
a basket of 10 currencies, advanced to a 14-year high which indicates
capital flight back into emerging assets," Nazri told Bernama.


He said projections for Malaysia's second quarter economic growth
were expected to kick start next week and this would create more
excitement on the local front.


For the week just ended, the FBM KLCI fell 12.19 points to 1,565.06 from 1,577.25 points previously.


The Finance Index lost 46.26 points to 14,811.13, the Industrial
Index gained 12.34 points to 2,867.9 and the Plantation Index declined
75.68 points to 7,698.11.


The FBM Emas Index fell 43.18 points to 10,766.43.


Total weekly volume increased to 4.900 billion shares valued at
RM9.243 billion from 3.798 billion shares valued at RM7.22 billion.


The Main Market turnover rose to 3.326 billion shares valued at
RM8.981 billion from 2.89 billion shares worth RM7.034 billion.


Volume on the ACE Market was higher at 1.040 billion shares worth
RM166.035 million from 447.57 million shares valued at RM78.42 million.


Warrants advanced to 521.418 million units worth RM90.732 million from 435.669 million units worth RM263.18 million. -- Bernama