Positive global equity outlook to boost market

THE FTSE Bursa Malaysia KLCI (FBM KLCI) is likely to trend higher this week on global equity upside momentum, a stronger Wall Street and the fall in oil price.

Dr Nazri Khan, vice-president, head of retail research of Affin Investment Bank, said on the technical front, the key index was still holding above the 20-, 50- and 200-day moving averages.

“This suggests that the longer-term uptrend remains intact and the local benchmark is poised for the next upleg at 1,600,” he told Bernama.

Nazri expected the bulls to remain in control with support levels pegged at 1,565 and 1,550 and resistance sighted at 1,580 and 1,600 level.

He said the market was now likely to reverse higher on improvement in the eurozone liquidity and the absence of US double-dip recession.

For the week just-ended, Bursa Malaysia showed a mixed trend as investor sentiment was listed by improved US economy outlook and dragged by concerns on China's growth outlook.

On a Friday-to-Friday basis, the benchmark FTSE Bursa Malaysia KLCI fell 7.60 points to 1,571.40.

The Finance Index rose 88.65 points to 14,192.65, Industrial Index declined 48.37 points to 2,815.73 and the Plantation Index fell 53.35 points to 8,576.19.

The FBM Emas Index lost 53.22 points to 10,845.83, FBM Ace Index gained 3.89 points to 4,664.76 and the FBM Mid 70 Index fell 53.01 points to 12,145.61.

Total weekly volume decreased to 7.479 billion units worth RM8.609bil from 7.556 billion units worth RM8.631bil the previous week.

The Main Market turnover fell to 5.257 billion shares worth RM8.387bil from 5.446 billion shares worth RM8.32bil previously.

Volume on the ACE market dropped to 1.816 billion units valued at RM247.438mil from 1.528 billion units valued at RM301.55mil the previous Friday.

Warrants rose to 1.143 billion shares worth RM47.533mil from 566.672 million shares worth RM85.524mil previously. Bernama