Stock trading in M'sia seen to be softer this week


AGAINST the backdrop of a slowdown in global growth, the FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to trade softer and within a tight range of between 1,680 points and 1,700 points this week.

Affin Investment Bank vice-president/head of retail research Dr Nazri Khan said the local market would continue to remain volatile in the absence of market moving factors at home and abroad.

“Bursa is likely to copy regional weaknesses after the International Monetary Fund cut the global growth outlook which saw commodity prices falling on concerns over weaker demand. “We believe the local equity market may have a choppy time as investors price in concerns over the weaker prospects for global economic growth,” he told Bernama.

Given the strong foreign inflow of funds and higher cash holdings of domestic institutional funds, Nazri said the impending general elections would offer modest bargain hunting activity and this should prevent the FBM KLCI from falling below the 1,700 points support level.

On a Friday-to-Friday basis, the benchmark FBM KLCI ended 7.75 points higher at 1,706.28 as the underlying sentiment still remained intact.

The Finance Index soared 83.91 points to 15,983.90, the Plantation Index rose 28.70 points to 8,143.24 and the Industrial Index added 3.83 points to 2,902.47.

The FBM Emas Index gained 40.63 points to 11,667.64, FBM Mid 70 increased 13.80 points to 12,931.44 but the FBMT100 slipped 6.23 points to 11,449.02 and the FBM Ace Index dropped 64.39 points to 3,986.29.

Weekly turnover declined to 4.187 billion shares, worth RM8.264bil, from the previosu week's 5.535 billion shares valued at RM9.124bil.

Main market volume fell to 3.475 billion shares, worth RM8.165bil, from 4.674 billion units, valued at RM9.01bil, registered the previous week.

The ACE market volume eased to 542.592 million shares, worth RM78.377mil, from 656.884 million shares, valued at RM91.183mil, recorded in the previous week.

Warrants decreased to 160.796 million shares, worth RM14.687mil, against the previous week's 191.441 million units valued at RM14.622mil. - Bernama

Bernama also reported separately:

KUALA LUMPUR: The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract on Bursa Malaysia Derivatives is likely to move in tandem with the underlying cash market this week, dealers said.

The positive underlying fundamentals would continue to support the local market to stay above the 1,700 points level.

“Following the bearish performance of global stocks and the sharp correction in regional equity markets, we expect the local FBM KLCI to stage a temporary decline to neutralise its overbought situation,” Affin Investment Bank head of retail research Dr Nazri Khan told Bernama.

He expects bargain hunting will emerge this week ahead of the forthcoming 13th general election.

On a weekly basis, April 2013 and September 2013 rose nine points each to 1,705 points and 1,688 points, respectively, May 2013 chalked up 9.5 points to 1,700 and June 2013 gained eight points to 1,698.

Total turnover fell to 40,329 lots, from 41,019 lots the previous week, while open interest declined to 39,047 contracts, from 45,352 contracts, previously.

On a Friday-to-Friday basis, the benchmark FBM KLCI finished the week 7.75 points higher at 1,706.28 points. - Bernama

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