KL bourse to maintain strong risk appetite'

Bursa Malaysia is expected to trend higher next week along with other
regional markets, boosted by positive news from the US and Europe.

Dealers said buying interest for assets in the emerging markets
including Malaysia on renewed belief among investors that the US Federal
Reserve would stand ready to support financial assets would lift up the
market.

Dr Nazri Khan, Affin Investment Bank's Head of Retail
Research, said: "We view the dovish statement from the US Federal
Reserve (that interest rates would remain exceptionally low until at
least late 2014) was a positive surprise for investors.

"We expect it would open the possibility of huge asset purchases to boost the global economy," he said.

He said the new resistance level for FBM KLCI would be 1,560 if the market could break the current resistance level of 1,530.

"Going forward, we believe the local equity market will maintain strong
risk appetite, with commodities and emerging market currencies seeing
strong demand," Nazri said.

On the local front, Bank Negara
Malaysia will announce the outcome of its monetary policy meeting on
Tuesday, probably a cut in the overnight policy rate to boost economic
activity across the board.

An analyst said the local market
would continue to be influenced by external events significantly despite
local fundamentals remaining strong and speculative play ahead of the
13th general election.

He said interest in construction counters
and government linked companies might heighten with MRT Corporation
announcing contracts for the My Rapid Transit project.

IJM and
Ahmad Zaki were the early winners with contracts totalling RM1.7
billion, and more contracts were expected to be given out going forward
with some media putting the total figure at about RM15 billion.


This week, the start of Year of the Dragon saw mild trading as most
investors had not returned from their Chinese New Year holiday.


Lack of support kept the market easier on Wednesday amid concerns over
the Euro debt crisis but bargain hunting prompted a rebound the
following day.

On Friday, the market eased a bit as investors
were reluctant to take bigger exposures ahead of the weekend amid
uncertainty in Europe.

On a weekly basis, the FBM KLCI declined 1.76 points to 1,520.90.

The Finance Index eased 52.5 points to 13,420.77 but the Plantation
Index surged 163.61 points to 8,750.52 and the Industrial Index advanced
19.45 points to 2,791.29.

The FBM Emas Index jumped 51.54
points to 10,578.33, the FBM Mid 70 Index added 256.21 points to
12,149.36 and the FBM ACE Index perked up 128.91 points to 4,496.64.

The total weekly volume decreased to 5.58 billion shares worth RM5.08
billion from 7.96 billion shares worth RM7.86 billion last week.

The Main Market turnover decreased to 3.33 billion shares valued at
RM4.73 billion from 4.94 billion shares worth RM7.38 billion previously.

Warrants slipped to 1.28 billion units worth RM220.38 million from 1.43 billion units worth RM227.49 million.

Volume on the ACE Market fell to 970.41 million shares valued at
RM135.55 million from 1.57 billion shares worth RM243.55 million. --
Bernama