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7th December, 2009
KUALA LUMPUR: Share prices on Bursa Malaysia are expected to continue their consolidation mode this week as window dressing activities remain elusive due to lack of strong positive leads.
“Fund managers are still on the sidelines, and I don’t see them making a move anytime soon,” a dealer said.
“Market participants need some strong incentives to move in as the benchmark index had already reached its peak of 1,288.42 on Nov 17. And at this time, I don’t see any push factors,” he added.
He said consolidation was necessary for the market to settle on a firm ground before surging to the next level.
The FTSE Bursa Malaysia (FBM) Kuala Lumpur Composite Index (KLCI) is expected to breach the 1,300-point level before year-end while the market waits for the country’s new economic model to be unveiled in the near future.
Analysts put this week’s support areas between 1,250.0 and 1,267.0 and resistance at the 1,269.0 and 1,286.0 levels.
Another dealer said most investors were cautious and reluctant to commit in the market due to uncertainties following Dubai World’s financial woes.
“With the Middle-Eastern debacle that emanated from Dubai, local investors will flee from stocks that have exposure to that country, keep more cash for the potential crash,” he said.
The financial worries in Dubai and also the Vietnamese Dong devaluation last month caused world and regional markets to correct downwards.
“Any movement in the world and regional bourses would give an impact on the local market as well,” the dealer said.
Last week, the local bourse moved in a tight range as profit taking and liquidation activities kept prices narrowly mixed.
On a weekly basis, the FBM KLCI was down by 0.41 of a point to 1,270.20 from 1,270.61.
The FBM Emas Index fell 14.28 points to 8,444.07, the FBM Top 100 Index slipped 15.89 points to 8,257.57 and the FBM 70 dwindled 68.70 points to 8,080.27.
The Finance Index lost 16.11 points to 10,886.66 and the Industrial Index was down by 17.87 points to 2,692.26.
The FBM ACE Index, however, surged 58.18 points to 4,349.13 and the Plantation Index rose 38.13 points to 6,284.07.
Overall volume for last week stood at 4.071 billion shares worth RM5.640 billion compared with 3.84 billion shares worth RM4.089 billion the previous week. The market was closed on Nov 27 for Aidiladha celebrations.
The main market turnover increased to 3.471 billion shares worth RM5.496 billion from 2.474 billion shares valued at RM3.97 billion.
Warrants jumped to 223.945 million units worth RM42.116 million as against 144.347 million units worth RM26.167 million previously.
The ACE Market volume rose slightly to 343.893 million shares worth RM78.735 million from 322.737 million shares valued at RM70.275 million the week before.
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