Saturday, February 5, 2011

Bursa set to re-test 1,550 next week

Bursa Malaysia is set to re-test the psychological 1,550-point mark next week with investors making a slow return to the market after the long Lunar New Year holiday. 

"The forecast for Malaysian market is broadly positive and we expect investors to wade in to bargain after the holiday," Affin Investment Bank head of retail research Dr Nazri Khan said.

He said the market, which ended on a bullish note on Wednesday despite Bursa Malaysia shut half-day would continue its momentum, thanks to positive news from the United States (US) and China markets.

Trading on the equities market closed from 12.30pm on Wednesday for Chinese New Year celebrations and resumes on Monday, Feb 7.

The market was also closed on Tuesday for Federal = Territory Day.

"Volume was healthy, despite the half-day trading, following better-than-expected manufacturing data from the US and China.

"With the Dow Jones Industrial Average touching the psychological 12,000-point level on Monday, the Asian markets will follow suit, given another bullish sign that the US economy is recovering," Nazri said.

HwangDBS Vickers Research said news flow on the economic and corporate fronts would go slow too before picking up next week.

"On tap are the Industrial Production Index for December last year and sector update for January statistics, both to be released on next Thursday, and earnings scorecards from the likes of Maybank (next Friday)," it said in its Malaysia Equity Research.

On Wednesday, the FTSE Bursa Malaysia KLCI rose to 1,531.82 compared to last week's closing of 1,521.89.

The local bourse started this week on a weaker note before going upward following several positive news locally and abroad.

On Wednesday, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said Malaysia's total trade in 2010 surpassed the RM1 trillion mark to register RM1.169 trillion, attributed to an impressive growth last year.

In 2011, a total of 113 trade promotion activities, comprising trade fairs, specialised marketing missions, joint promotion activities and others will be undertaken to further boost trade.

Main Board debutante Century Software ended the week's trading at 97 sen, four sen higher over its offer price of 93 sen.

Meanwhile, MTD Capital which resumed trading at 10am Monday after it was suspended last Friday following an announcement it had received a joint offer to acquire the entire business and undertaking of MTD Prime and Metramac including all assets and liabilities for RM3.525 billion in cash, slid 23 sen to close at RM9.99 on Wednesday.

The FBM Emas Index surged 82.76 points to 10,570.32, the FBM70 Index jumped 102.81 points to 11,354.96 and the FBM Ace Index rose 161.49 points to 4,414.29.

The Finance Index increased 36.49 points to 13,971.14, the Industrial Index rose 12.8 points to 2,880.3 and the Plantation Index surged 69.74 points to 7,957.5.

The total weekly volume declined to 2.95 billion shares valued at RM3.78 billion from last week's 7.961 billion shares valued at RM11.443 billion.

The Main Market turnover edged down to 2.60 billion units worth RM3.72 billion from 6.69 billion shares valued at RM11.22 billion.

Turnover on the ACE Market dropped to 151.33 million shares worth RM19.11 million from 512.28 million units worth RM54.04 million.

Warrants decreased to 185.85 million units worth RM44.90 million from 744.81 million units valued at RM153.04 million previously. -- Bernama

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