Saturday, 26 November 2011

KL stocks expected to head south

Share prices on Bursa Malaysia are expected to be lower next week with the market barometer, FTSE Bursa Malaysia KLCI (FBM KLCI), likely to hover around the 1,400-level due to deteriorating outlook in global markets.

Affin Investment Bank head of retail research, Dr Nazri Khan, said more downside risk remained in view of the lack of confidence in the market on fears of the impact from the escalating debt crisis in Europe.

"More investors are unlocking European assets because they expect tough capital requirement for European business with rising funding cost," he said.

He said the local bourse now was oversold and counters looked cheap.

"However, there is no short-term profit. People are looking for markets to calm down and for the debt crisis in Europe to end. However, this will take time," he said.

Nazri said currently, there were no new leads to boost the local market and external factors would still dominate sentiment.

During the week just-ended, the local bourse was mostly lower reflecting weaknesses in regional markets dominated by fears of escalating debt crisis in Europe and the still fragile US economy.

However, on Thursday, the market staged a recovery on bargain hunting.

On Friday, the market ended on a weak note as ongoing debt crisis in Europe plagued regional markets and investors sentiment.

The local bourse will resume its operations on Tuesday after the Awal Muharram holiday on Monday.

Harvest Court Industries was in the limelight during the week following the resignation of Mohd Nazifuddin Mohd Najib, son of Prime Minister Datuk Seri Najib Tun Razak, as non-executive director of the company.

On Friday, Harvest Court, fell 14 sen to 97 sen.

On a week-to-week basis, the FBM KLCI declined 22.85 points to 1,431.55, Finance Index lost 205.21 points to 12,783.58, Plantation Index declined 5.91 points to 7,608.73 and the Industrial Index eased 76.09 points to 2,597.09.

The FBM Emas Index dropped 169.58 points to 9,815.97, FBM 70 Index eased to 232.41 points to 10,695.91, FBM Ace Index fell 63.92 points to 4,132 and the FBMT100 Index declined 165.50 to 9,619.81.

Total weekly volume declined to 7.27 billion sharesworth RM5.51 billion from 10.92 billion shares worth RM7.29 billion last week.

Main Market turnover declined to 5.61 billion units valued at RM5.28 billion from 8.23 billion units valued at RM6.92 billion last Friday.

Warrants turnover increased to 564.09 million shares worth RM65.47 million from 406.66 million shares worth RM39.02 million previously.

Volume on the ACE market decreased to 1.06 billion units valued at RM157.32 million from 2.25 billion units valued at RM315.56 million last week. -- Bernama

Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or for more details.
Related Posts Plugin for WordPress, Blogger...