KUALA LUMPUR: Christmas seems to have come early this year with fund managers and retail investors starting to strategise and realign their fund portfolio from as early as October.

As a result, the local bourse has experienced "snowing", with an inflow of funds pushing the FTSE Bursa Malaysia KLCI (FBM KLCI) to surpass an all-time high today, not once, but several time before resting at 1,670.16.

Inter-Pacific Research Sdn Bhd, Head of Research, Pong Teng Siew said rotational play had already started with investors putting their money on banking and financial stocks.

"The interest of the investors has shifted to banking stocks as it is relatively cheap compared to telecommunications and consumer, which are more stable and defensive," he told Bernama here today.

He said as banking and financial stocks have bigger weightage than others on the FBM KLCI, even a small movement can drive the key index upward.

The FBM KLCI which opened 0.19 of a point lower at 1,665.23, fluctuated within 1,670.16 and 1,665.12 throughout the trading session today.

At 10.16 am, it hit the first all-time high of 1,668.66 since Oct 5, before hitting a fresh high at 1,669.98, five minutes before the end of the morning session.

Resuming the afternoon session, the FBM KLCI hit another high at 1,669.99 and resumed its upward momentum to end with a flourish at 1,670.16.

Prospects of a December general election in the country could also be a factor behind the FBM KLCI's further rise soon.

Pong said Public Bank and LPI Capital's financial announcement recently is a kick-off to a string of corporate results which are likely to be positive and supportive of the local bourse.

Inter-Pacific Research is looking at a possible FBM KLCI of 1,692 points by year-end, he added.

Despite strong global headwinds, most heavyweights on Bursa have throughout the year been playing the role of "Santa Claus", by giving out satisfactory dividends to shareholders.

If this trend continues, the Christmas rally may be just around the corner with the FBM KLCI climbing further to another high. -- BERNAMA