Share prices on Bursa Malaysia are expected to extend gains next week on heightened global risk appetite boosted by good news from Europe and the US economic outlook, dealers said.
“Going forward next week, we expect investors to price in the stronger US and Europe economy as well as the reduced banking crisis risk in both continents,” Affin Investment Bank's Head of Retail Research, Dr Nazri Khan told Bernama today. The private sector investors recently agreed to make a 50 per cent cut in Greek bonds and it is expected to boost the firepower of the eurozone rescue fund to US$1.4 trillion (US$1=RM3.13) while the US third quarter gross domestic product data rose 2.5 per cent. “These will push the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) index to a possible 1,524 level, which is FBM KLCI high made in 2008 before the subprime crisis,” he added.
In line with the positive trend on regional markets, Nazri said the traditional year-end rally has started and is likely to last before Chinese New Year 2012.
Meanwhile, TA Securities senior technical analyst Stephen Soo said the benchmark index is expected to strengthen next week, boosted by rising appetite in riskier assets.
“We foresee the positive sentiment globally will further help properties and construction stocks to slightly recover after their recent losses,” he added.
However, OSK Research director/research head Chris Eng said the market is still in defensive position and investors remain cautious amid the uncertain global economic outlook.
"There is a possibility the market will dip if the index reaches the 1,500 level, due to selling pressure," he added. Meanwhile, during the whole trading week, the local bourse was in a positive movement with the benchmark index ending Friday's trade with 10.89 points at 1,481.82.
Bursa Malaysia was closed on Thursday for the Deepavali holiday.
On a week-to-week basis, the FBM KLCI advanced 42.99 points to 1,481.82 compared to last Friday's closing at 1,438.83.
The Finance Index gained 339.47 points to 13,420.59 while the Plantation Index rose 177.75 points to 7,494.68 and the Industrial Index added 77.35 points to 2,714.66.
The FBM Emas Index rose 310.41 points to 10,117.36, the FBM70 Index advanced 418.94 points to 10,959.65, the FBM Ace Index gained 112.46 points to 4,072.95 while the FBMT100 added 307.83 points to 9,935.99.
Total weekly volume declined 6.033 billion shares worth RM7.097 billion from 7.391 billion shares worth RM6.584 billion last week.
Main Market turnover fell 4.674 billion units worth RM6.941 billion from 5.491 billion units worth RM6.362 billion on Friday.
Warrants turnover slipped to 471.509 million units valued at RM30.039 million from Friday’s 659.107 million units valued at RM32.675 million.
Volume on the ACE market dwindled to 775.248 million units worth RM111.181 million from 1.194 billion units worth RM164.173 million last week. -- Bernama
“Going forward next week, we expect investors to price in the stronger US and Europe economy as well as the reduced banking crisis risk in both continents,” Affin Investment Bank's Head of Retail Research, Dr Nazri Khan told Bernama today. The private sector investors recently agreed to make a 50 per cent cut in Greek bonds and it is expected to boost the firepower of the eurozone rescue fund to US$1.4 trillion (US$1=RM3.13) while the US third quarter gross domestic product data rose 2.5 per cent. “These will push the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) index to a possible 1,524 level, which is FBM KLCI high made in 2008 before the subprime crisis,” he added.
In line with the positive trend on regional markets, Nazri said the traditional year-end rally has started and is likely to last before Chinese New Year 2012.
Meanwhile, TA Securities senior technical analyst Stephen Soo said the benchmark index is expected to strengthen next week, boosted by rising appetite in riskier assets.
“We foresee the positive sentiment globally will further help properties and construction stocks to slightly recover after their recent losses,” he added.
However, OSK Research director/research head Chris Eng said the market is still in defensive position and investors remain cautious amid the uncertain global economic outlook.
"There is a possibility the market will dip if the index reaches the 1,500 level, due to selling pressure," he added. Meanwhile, during the whole trading week, the local bourse was in a positive movement with the benchmark index ending Friday's trade with 10.89 points at 1,481.82.
Bursa Malaysia was closed on Thursday for the Deepavali holiday.
On a week-to-week basis, the FBM KLCI advanced 42.99 points to 1,481.82 compared to last Friday's closing at 1,438.83.
The Finance Index gained 339.47 points to 13,420.59 while the Plantation Index rose 177.75 points to 7,494.68 and the Industrial Index added 77.35 points to 2,714.66.
The FBM Emas Index rose 310.41 points to 10,117.36, the FBM70 Index advanced 418.94 points to 10,959.65, the FBM Ace Index gained 112.46 points to 4,072.95 while the FBMT100 added 307.83 points to 9,935.99.
Total weekly volume declined 6.033 billion shares worth RM7.097 billion from 7.391 billion shares worth RM6.584 billion last week.
Main Market turnover fell 4.674 billion units worth RM6.941 billion from 5.491 billion units worth RM6.362 billion on Friday.
Warrants turnover slipped to 471.509 million units valued at RM30.039 million from Friday’s 659.107 million units valued at RM32.675 million.
Volume on the ACE market dwindled to 775.248 million units worth RM111.181 million from 1.194 billion units worth RM164.173 million last week. -- Bernama
