KL shares seen trending higher

Share prices on Bursa Malaysia are expected trend higher next week, backed by positive news from the internal and external fronts.

Dealers said selective buying in quality stocks by local and foreign fund investors would push up the market in line with its regional peers.

Among counters likely to attract players would be government-linked companies, a dealer said.

Affin Investment Bank Head of Retail Research Dr Nazri Khan said key market barometer FBM KLCI could hover in the 1,460-1,500 range after declining 4.31 points on a weekly basis to 1,477.51 from 1,481.82 despite a strong rebound on Friday.

Locally, he said, market fundamentals remained strong as growth indicators such as exports continued to be robust.

Malaysia recorded a trade surplus of RM9.63 billion in September with total trade rising by 14.9 per cent to RM107.73 billion.

In the US, the economy showed better recovery after job data by ADP National Employment Report revealed private firms added more jobs than expected last month.

Greece signalled it was willing to scrap plans for a contentious referendum on its bailout package and this had boosted sentiment, Nazri said.

"News on the Greek bailout referendum cancellation has also removed uncertainty in the market," he said.

The market was now awaiting an action plan for growth from the G20 Summit, he added.

Bursa Malaysia's Finance Index dropped 135.75 points to 13,284.84 this week while the Plantation Index rose 52.21 points to 7,546.89 and the Industrial Index lost 12.96 points to 2,701.7.

The FBM Emas Index declined 45.21 points to 10,072.15, the FBM70 Index went down 116.89 points to 10,842.76, the FBM ACE Index gained 126.99 points to 4,199.94 and the FBM Top 100 Index decreased 126.99 points to 9,890.64.

Total volume for the week increased 8.15 billion shares valued at RM7.22 billion from 6.033 billion shares worth RM7.1 billion previously.

The Main Market turnover rose 5.76 billion units valued at RM6.91 billion from 4.67 billion units worth RM6.94 billion.

Warrants slipped to 442 million units worth RM36.75 million from last week's 471.51 million units valued at RM30.04 million.

Volume on the ACE Market went up to 2.0 billion valued at RM257.73 million from 775.25 million units worth RM111.18 million. -- Bernama

Palm futures set to continue uptrend

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to continue their uptrend next week on the back of improving risk appetite boosted by positive developments in the euro zone.

According to reports, Greek Prime Minister George Papandreou was prepared to drop a plan for a nationwide referendum on a European Union bailout package while a rate cut by the European Central Bank had raised hopes for an easing of the region's debt crisis.

The market applauded the Greek government's decision to abandon the referendum, dealers said.

On the local front, the market is waiting for a fresh lead in the form of October output and stock data which is due for release by the Malaysian Palm Oil Board (MPOB) next week.

This week, the November 2011 contract gained RM52 to RM3,023 a tonne, December 2011 increased RM45 to RM3,021 a tonne, January 2012 added RM42 to RM3,013 a tonne and February 2012 advanced RM47 to RM3,020 a tonne.

The weekly volume decreased to 104,432 lots from 118,781 lots last week while open interest at the close Friday declined to 109,194 contracts from 129,162 contracts.

On the physical market, Interband Group of Companies Senior Palm Oil Trader Jim Teh said prices were anticipated to hover between RM2,800 and RM2,900 a tonne in view of the rainy season.

The November South contract gained RM40 to RM3,030 a tonne this week.

The market will be closed on Monday in conjunction with the Hari Raya Aidil Adha celebration which falls on Sunday. -- Bernama

Rubber mart expected to fall further

The Malaysian rubber market is expected to fall further next week due to sluggish demand and uncertainties in the global economy.

A dealer said demand was expected to be slower on news that Japanese carmakers would keep its Thai factories suspended due to shortage of parts.

Floods have spread across 64 of Thailand's 77 provinces and swamped seven industrial estates where Honda and auto-parts makers have factories.

Meanwhile, dealers said the rainy season in most rubber producing countries would not disrupt supply as China's Qingdao port had a high stockpile of some 180,000 metric tonnes.

Buyers were expected to remain on the sidelines, anticipating further weakness in prices, they said.

This week, the Malaysian Rubber Board's official physical price for tyre-grade SMR 20 declined 94.0 sen to 1,137.0 sen per kg while latex in bulk fell 35.0 sen to 758.5 sen per kg.

The unofficial closing price for SMR 20 slipped 89.5 sen to 1,136.5 sen per kg while latex in bulk dropped 37.0 sen to 757.5 sen per kg. -- Bernama

Buying on KL tin mart to pick up

Buying activities on the Kuala Lumpur Tin Market (KLTM) are expected to pick up next week but sellers may reserve their stocks in anticipation of a higher tin price, a dealer said.

The daily metal price movements on the London Metal Exchange (LME) would continue to influence the price on KLTM, he said.

"We expect the price to remain at the US$22,000 level next week," he added.

Tin price on the KLTM ended the week at US$22,000 per tonne, unchanged from the previous weekly closing while on the LME, it fell US$50 to US$22,005 per tonne.

The total weekly turnover rose to 235 tonnes from 176 tonnes with Japanese, European and local traders accounting for the week's transactions.

Price differential between the KLTM and LME widened to a premium of US$335 per tonne from US$285 per tonne previously.

The KLTM will be closed on Monday in conjunction with the Hari Raya Aidil Adha celebration which falls on Sunday. -- Bernama