FBM KLCI likely to zoom higher
Publish date: Sat, 22 Dec 2012, 12:13 PM
The FTSE Bursa Malaysia KLCI (FBM KLCI) is likely to be firmer next week boosted by positive global economic news especially from the US, China and Japan.
Vice-president/head of retail research of Affin Investment Bank, Dr Nazri Khan, said the Malaysian equity market will zoom higher from a number of positive events with the global equities holding onto strong December gains despite being overbought and the holiday-shortened session.
Bursa Malaysia will close on Tuesday for Christmas holiday.
"We note that both MSCI All World and the FTSE All-World are near 17-month highs, with the US stock benchmark sits just below its best levels in almost five years while the local index FBM KLCI is just 15 points below its all-time high.
"We believe equities have been rallying on the back of better recent global economic data, central bank support, easing eurozone stress and building hope that a US budget deal can be reached to prevent the US falling off the fiscal cliff," he said.
He said the immediate resistance was currently pegged at 1,680 level while support was seen at 1,650-level.
"Barring any close below 1,630, we view any weakness as an opportunity to re-enter the market as the monthly, weekly and daily uptrend lines remained sound and intact.
"Given ample liquidity and rising foreign net equity flow, we are not surprised to see FBM KLCI aiming higher for 1,680-level.
"Any close above 1,680 will lead FBM KLCI to a good bull rally towards an all-time high of 1,720-1,750 in the early part of next year," he said.
For the week just-ended, the FBM KLCI rose 6.87 points to 1,658.85 from 1,651.98 previously.
The Finance Index surged 64.83 points to 15,191.6 and the Industrial Index gained 10.72 points to 2,717.32.
The Plantation Index slipped 5.94 points to 7,979.52.
The FBM Emas Index jumped 35.04 points to 11,237.17, FBMT100 rose 36.8 points to 11,096.6 and the FBM ACE Index shoot up 72.47 points to 4,200.7.
The FBM 70 Index shed 3.33 points to 12,089.75.
Weekly turnover fell to 3.874 billion shares worth RM6.569 billion from the 4.31 billion shares worth RM7.6 billion last Friday.
The Main Market volume eased to 2.877 billion units valued at RM6.402 billion from the 3.48 billion units valued at RM7.47 billion previously.
The ACE market volume dipped to 771.098 million shares worth RM139.984 million from the 624.28 million shares worth RM106.93 million last week.
Warrants declined to 222.394 million units valued at RM25.742 million from 187.12 million units valued at RM18.98 million. -- BERNAMA
Vice-president/head of retail research of Affin Investment Bank, Dr Nazri Khan, said the Malaysian equity market will zoom higher from a number of positive events with the global equities holding onto strong December gains despite being overbought and the holiday-shortened session.
Bursa Malaysia will close on Tuesday for Christmas holiday.
"We note that both MSCI All World and the FTSE All-World are near 17-month highs, with the US stock benchmark sits just below its best levels in almost five years while the local index FBM KLCI is just 15 points below its all-time high.
"We believe equities have been rallying on the back of better recent global economic data, central bank support, easing eurozone stress and building hope that a US budget deal can be reached to prevent the US falling off the fiscal cliff," he said.
He said the immediate resistance was currently pegged at 1,680 level while support was seen at 1,650-level.
"Barring any close below 1,630, we view any weakness as an opportunity to re-enter the market as the monthly, weekly and daily uptrend lines remained sound and intact.
"Given ample liquidity and rising foreign net equity flow, we are not surprised to see FBM KLCI aiming higher for 1,680-level.
"Any close above 1,680 will lead FBM KLCI to a good bull rally towards an all-time high of 1,720-1,750 in the early part of next year," he said.
For the week just-ended, the FBM KLCI rose 6.87 points to 1,658.85 from 1,651.98 previously.
The Finance Index surged 64.83 points to 15,191.6 and the Industrial Index gained 10.72 points to 2,717.32.
The Plantation Index slipped 5.94 points to 7,979.52.
The FBM Emas Index jumped 35.04 points to 11,237.17, FBMT100 rose 36.8 points to 11,096.6 and the FBM ACE Index shoot up 72.47 points to 4,200.7.
The FBM 70 Index shed 3.33 points to 12,089.75.
Weekly turnover fell to 3.874 billion shares worth RM6.569 billion from the 4.31 billion shares worth RM7.6 billion last Friday.
The Main Market volume eased to 2.877 billion units valued at RM6.402 billion from the 3.48 billion units valued at RM7.47 billion previously.
The ACE market volume dipped to 771.098 million shares worth RM139.984 million from the 624.28 million shares worth RM106.93 million last week.
Warrants declined to 222.394 million units valued at RM25.742 million from 187.12 million units valued at RM18.98 million. -- BERNAMA
Discussions
2 people like this. Showing 13 of 13 comments
he predicted that the index will touch 1,700 but instead turun very laju...
2012-12-23 11:03
the drop in the index is temporary only.. obama is trying to convince the budget, and want to get agreement by Christmas.. which is next week.. i believe they will try whateva they can to get agreement from the opposite.. so, wait for it.. if good news, the dropped of 11pts, will be simply recovered. 1700 would be achievable.. dont be surprise on the last day of the year, index will up more than 20pts.. =)
2012-12-23 11:29
Fiscal cliff fears quadrupled since last week because of the time line ,becoming more critical each passing day ,with no solution in sight to close the deal!Markets and global sentiments had earlier risen on the new s that repblicans and democrats wre nearing the deal.And so markets worldwide went up high.
Dr nazri 's1700 pts forecast next week could be just an 'oasis' on the back of previous good news , as we continue to wait and we wait......for a final -moment- decision to prevent fiscal cliff!
2012-12-23 11:43
Read Obama's body language! He is not panicking! Republican camp on the other hand is!
2012-12-23 12:01
Obama has already gotten the concession he wants ie tax for the top wealthy. Now is just allowing more concessions from the fighting fued between the Republican hardliners! Democrats already gave their version of spending cuts to medicals etc. Its basically a take it or leave it proposition to Mr B! With the polls showing Republicans are to blame if the nation goes over the cliff, Republicans are surely panicking! That's why plan B is shot down! They may lose the house of representatives if they continue their antics! This is the republicans own law that they passed on the fiscal cliff afterall! Thank Bush!
11th hour agreement (or concessions) should be reached! Next year mild contractions in US economy too. Not everything is Honky dory! But in the Illuminati-backed Obama we trust! LoL
2012-12-23 12:28
Fiscal cliff are now more closer to reality ;both sides vehemently holding to their grounds .thereafter us will probably runs into recession.
2012-12-24 07:35
I believe KLCI will touch 1700 as "said" by 2012 but of course it's not sustainable looking at the window dressing activity.
2012-12-24 07:59
malaysia msci jan. 2013 call option at 15(+016), offshore currency in
focus chf/usd, plantation stock pick anglo-oriental plantation, stock
on the zoom is axiata (airtime sukuk asset value), penny stock is the
counter which have warrant stock (WA high swing volume with mother
share),long term buy still kulim or fgv
2012-12-24 09:00
dr nazri was right on his analytical ...did my own research last night...bollinger band emerged ... leading to possible bullishness
2012-12-24 09:37
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Not very sure when dr nazri prepared this report ; if its before last thursday or thursday as markets really dropped on last friday on concerns from Fiscal cliff - the day ,republican speaker failed to get a vote to raise taxes. Could klse going high up again next week when the for fiscal cliff concerns stll remains.
2012-12-23 06:26