FBM KLCI likely to soften
Publish date: Sat, 03 Nov 2012, 11:44 AM
The FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to soften next week after hitting a new historic high recently, dealers said.
The market set a new all-time high of 1,674.67 on Tuesday.
Affin Investment Bank Bhd Vice-President/Head of Retail Research Dr Nazri Khan said the consistent leadership performance of the finance sector pushing the local bourse upward was a sign of overbought conditions with some healthy rest expected next week.
He said range bound trading may persist with the ACE Market's penny stocks dominating trade on retail rotational plays, suggesting the possible start of a Christmas/Chinese New Year rally as blue chips within FBM KLCI consolidate.
"In the meantime, the FBMKLCI continues to dance around in the weekly 1660-1680 trading range in search of a fresh catalyst to break out of that range," he said.
Another dealer said international traders would remain cautious after the Wall Street was closed for two days following a natural disaster.
"Economists are still observing the effect of the hurricane to the US economy," he said.
Investors are also cautiously awaiting the outcome of the US presidential election which is scheduled on Tuesday.
During the week-just-ended, the FBM KLCI closed 15.76 points lower at 1,565.13, compared with last week's closing of 1,671.89.
The Finance Index surged 156.21 points to 15,122.98 while the Industrial Index fell 44.73 points to 2,862.53 and the Plantation Index declined 48.6 points to 8,153.11.
The FBM Emas Index decreased 64.82 points to 11,291.66, the FBMT100 dropped 66.16 points to 11,125.59, but the FBM ACE Index went up 44.6 points to 4,316.93 and the FBM 70 Index surged 114.14 points to 12,345.56.
Weekly turnover rose to 7.038 billion shares valued at RM7.591 billion from 4.859 billion shares valued at RM5.562 billion last Friday.
The Main Market volume increased to 4.957 billion shares worth RM7.291 billion from 4.03 billion units worth RM5.425 billion last week.
The ACE market volume soared to 1.42 billion shares valued at RM257.102 million from 477.318 million shares valued at RM86.833 million previously.
Warrants rose to 639.372 million units worth RM35.957 million from 277.44 million units worth RM19.843 million. -- BERNAMA
The market set a new all-time high of 1,674.67 on Tuesday.
Affin Investment Bank Bhd Vice-President/Head of Retail Research Dr Nazri Khan said the consistent leadership performance of the finance sector pushing the local bourse upward was a sign of overbought conditions with some healthy rest expected next week.
He said range bound trading may persist with the ACE Market's penny stocks dominating trade on retail rotational plays, suggesting the possible start of a Christmas/Chinese New Year rally as blue chips within FBM KLCI consolidate.
"In the meantime, the FBMKLCI continues to dance around in the weekly 1660-1680 trading range in search of a fresh catalyst to break out of that range," he said.
Another dealer said international traders would remain cautious after the Wall Street was closed for two days following a natural disaster.
"Economists are still observing the effect of the hurricane to the US economy," he said.
Investors are also cautiously awaiting the outcome of the US presidential election which is scheduled on Tuesday.
During the week-just-ended, the FBM KLCI closed 15.76 points lower at 1,565.13, compared with last week's closing of 1,671.89.
The Finance Index surged 156.21 points to 15,122.98 while the Industrial Index fell 44.73 points to 2,862.53 and the Plantation Index declined 48.6 points to 8,153.11.
The FBM Emas Index decreased 64.82 points to 11,291.66, the FBMT100 dropped 66.16 points to 11,125.59, but the FBM ACE Index went up 44.6 points to 4,316.93 and the FBM 70 Index surged 114.14 points to 12,345.56.
Weekly turnover rose to 7.038 billion shares valued at RM7.591 billion from 4.859 billion shares valued at RM5.562 billion last Friday.
The Main Market volume increased to 4.957 billion shares worth RM7.291 billion from 4.03 billion units worth RM5.425 billion last week.
The ACE market volume soared to 1.42 billion shares valued at RM257.102 million from 477.318 million shares valued at RM86.833 million previously.
Warrants rose to 639.372 million units worth RM35.957 million from 277.44 million units worth RM19.843 million. -- BERNAMA
Discussions
Be the first to like this. Showing 3 of 3 comments
Normally KLCI index isolate from above issue but suddenly go dipped with shock.Unpredictable! Don't know tomorrow will rebound after dipped?
2012-11-04 14:04
i think the profit taking activity will continue next week but still hoping there will be some rebound happen tomorrow...
2012-11-04 14:41
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Us economists believed the worst sandy mega storms has little impact on its
economy.Most economists agrees that US economic risks are those from European counterparts , as the significant drop of bilateral trades will derail us economic growth.
2012-11-04 10:19