KUALA LUMPUR: Stocks are expected to continue to trade higher this week, with the benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBMKLCI) trying to break the psychological 1,500 mark for the first time in more than three months.
The overall improving sentiments are mainly driven by a coordinated move by major central banks to ease Europe's debt crisis, the greater clarity provided by European policy makers on plans to stabilise the debt situation, as well as encouraging economic data from the US.
Meanwhile, closer at home, speculation of DRB-HICOM Bhd's possible acquisition of major stakes in Proton Holdings Bhd, possible mergers between ECM Libra Financial Group and K&N Kenanga Holdings, as well as Petronas' plans to build its third natural gas terminal in Lumut, will keep investors excited for the week.
"Investors' confidence has significantly improved over the past few trading days, and is expected to stay strong over the near term. This may be the beginning of a year-end rally," said a head of research from a local brokerage.
Analysts expect the immediate resistance level for the benchmark index at about 1,500 level, while the near-term support level is around the 1,470 level.
The FBM KLCI ended four consecutive weeks of losses with a 4.01 per cent gain last week at 1,489.02. It was also the index's highest weekly gain since July 2009.
Last week, the entire market capitalisation of the stock market rose by some RM30 billion to RM1.27 trillion, from RM1.24 trillion the week before.
The gains were partly driven by improving sentiments among foreign fund managers, who boughtalmost RM3 billion and sold RM1.76 billion worth of stocks, resul-ting in a net buying of more than RM1.17 billion.
Last week, the US Federal Reserve and five other central banks lowered the cost of dollar funding to ease Europe's debt crisis, while China reduced the amount of cash that banks must set aside as reserves for the first time since 2008. The reserve ratios will decline by 50 basis points starting today.
Meanwhile, data revealed that payroll gains in the US improved last month, and jobless rate was down to 8.6 per cent, its lowest level since March 2009.
This week, stocks that will be in investors' radar, among others, include Proton and DRB-HICOM on speculation of possible corpo-rate exercise; Glomac Bhd on its 50 per cent jump in second quarter net profit; as well as Tan Chong Motor Holdings Bhd, which a weekly publication reported that its Vietnam venture may reach break-even earlier than expected.
The overall improving sentiments are mainly driven by a coordinated move by major central banks to ease Europe's debt crisis, the greater clarity provided by European policy makers on plans to stabilise the debt situation, as well as encouraging economic data from the US.
Meanwhile, closer at home, speculation of DRB-HICOM Bhd's possible acquisition of major stakes in Proton Holdings Bhd, possible mergers between ECM Libra Financial Group and K&N Kenanga Holdings, as well as Petronas' plans to build its third natural gas terminal in Lumut, will keep investors excited for the week.
"Investors' confidence has significantly improved over the past few trading days, and is expected to stay strong over the near term. This may be the beginning of a year-end rally," said a head of research from a local brokerage.
Analysts expect the immediate resistance level for the benchmark index at about 1,500 level, while the near-term support level is around the 1,470 level.
The FBM KLCI ended four consecutive weeks of losses with a 4.01 per cent gain last week at 1,489.02. It was also the index's highest weekly gain since July 2009.
Last week, the entire market capitalisation of the stock market rose by some RM30 billion to RM1.27 trillion, from RM1.24 trillion the week before.
The gains were partly driven by improving sentiments among foreign fund managers, who boughtalmost RM3 billion and sold RM1.76 billion worth of stocks, resul-ting in a net buying of more than RM1.17 billion.
Last week, the US Federal Reserve and five other central banks lowered the cost of dollar funding to ease Europe's debt crisis, while China reduced the amount of cash that banks must set aside as reserves for the first time since 2008. The reserve ratios will decline by 50 basis points starting today.
Meanwhile, data revealed that payroll gains in the US improved last month, and jobless rate was down to 8.6 per cent, its lowest level since March 2009.
This week, stocks that will be in investors' radar, among others, include Proton and DRB-HICOM on speculation of possible corpo-rate exercise; Glomac Bhd on its 50 per cent jump in second quarter net profit; as well as Tan Chong Motor Holdings Bhd, which a weekly publication reported that its Vietnam venture may reach break-even earlier than expected.
