KL shares to rebound next week
Publish date: Sat, 22 Jun 2013, 12:29 PM
Share prices on Bursa Malaysia are expected to rebound next week with possible fund inflows into defensive markets including Malaysia as investors opt for safer haven equities.
Affin Investment Bank vice president and head of retail research Dr Nazri Khan said with the dollar's strength and the bullish reaction in the yield curve would likely result in the escalation of selling in high beta overseas equity markets with funds flowing to defensive markets such as Malaysia.
"Hence, the defensive appeal of Malaysia should see local bourse trading higher as they brace for safer haven inflow following the regional fund rebalancing.
"Following the defensive rebalancing, we expect local equity markets to rebound within a tight and tense 1,750-1,780 range trading," he told Bernama.
However, he said near-term sentiment should be cautiously volatile as it would be adversely impacted by concerns over a credit crunch in China and reversal of fund flows from the Asian region back to the US.
On the intermarket analysis, Nazri said all four offensive sectors (technology, finance, industrials, plantation) stayed below one week low while three defensive sectors (healthcare,
utilities, consumers) are holding above their one week low which suggest a cautious sentiment and defensive broad market ahead.
He said by accumulating high-yielding defensive bluechips, these counters may rebound further amidst defensive volatility after having a deep correction in the past few months.
"Although we expect consolidation, such correction is healthy to neutralise the bull run that occured in the local market over the last two months," he said.
Apart from that, sidelined institutional and retail investors are expected to return and buy on weakness in the second half of 2013, potentially before the Umno election slated in October.
For the week just-ended, he said ironically, despite the deep selling in the local market, defensive rotation interest to safer bluechips like Maxis and IHH Healthcare were noted, driven by institutional players.
The week started with a slight recovery from the previous week's losses but it was kept short after the US Federal Reserve Chairman Ben Bernanke announced on Wednesday the scaling back of
bond-buying later this year.
The local bourse, as well as other regional bourses, reacted negatively with key indexes in these bourses declining between one and two per cent.
Share prices ended the trading week in the red as investors were reluctant to increase their holdings against the backdrop of developments in the US.
Nazri said going forward, ample local liquidity and positive local themes, such as the upcoming of mega initial public offering of Airasia X, Iskandar Waterfront and impending project news flow such as the RM20 billion high-speed train and MRT 2, could cushion market decline in the near-term.
On a Friday-to-Friday basis, the FBM KLCI slipped 6.34 points to 1,755.85 compared with last Friday's close of 1,762.19.
The Finance Index declined 24.48 points to 16,644.32, the Industrial Index decreased 23.86 points to 2,979.65 and the Plantation Index erased 302.27 points to 8,098.05.
The FBM Emas Index fell 78.49 points to 12,172.66, the FBMT100 was 65.84 points lower at 11,945.17, the FBM 70 Index dwindled 168.44 points to 13,888.32 while the FBM ACE Index improved 19.2
points to 4,773.47.
Weekly turnover slipped to 8.724 billion shares, worth RM11.063 billion compared with last week's 10.38 billion shares, valued at RM12.234 billion.
Main market volume declined to 7.428 billion units, valued at RM10.837 billion, compared with 8.854 billion shares, worth RM11.985 billion, recorded previously.
Warrants dropped to 150.208 million shares, worth RM19.034 million, versus 265.844 million units, worth RM34.803 million, registered last week.
The ACE market volume also eased to 1.137 billion shares, valued at RM203.187 million, compared with 1.244 billion shares, worth RM209.573 million, chalked up last week.-- Bernama
Affin Investment Bank vice president and head of retail research Dr Nazri Khan said with the dollar's strength and the bullish reaction in the yield curve would likely result in the escalation of selling in high beta overseas equity markets with funds flowing to defensive markets such as Malaysia.
"Hence, the defensive appeal of Malaysia should see local bourse trading higher as they brace for safer haven inflow following the regional fund rebalancing.
"Following the defensive rebalancing, we expect local equity markets to rebound within a tight and tense 1,750-1,780 range trading," he told Bernama.
However, he said near-term sentiment should be cautiously volatile as it would be adversely impacted by concerns over a credit crunch in China and reversal of fund flows from the Asian region back to the US.
On the intermarket analysis, Nazri said all four offensive sectors (technology, finance, industrials, plantation) stayed below one week low while three defensive sectors (healthcare,
utilities, consumers) are holding above their one week low which suggest a cautious sentiment and defensive broad market ahead.
He said by accumulating high-yielding defensive bluechips, these counters may rebound further amidst defensive volatility after having a deep correction in the past few months.
"Although we expect consolidation, such correction is healthy to neutralise the bull run that occured in the local market over the last two months," he said.
Apart from that, sidelined institutional and retail investors are expected to return and buy on weakness in the second half of 2013, potentially before the Umno election slated in October.
For the week just-ended, he said ironically, despite the deep selling in the local market, defensive rotation interest to safer bluechips like Maxis and IHH Healthcare were noted, driven by institutional players.
The week started with a slight recovery from the previous week's losses but it was kept short after the US Federal Reserve Chairman Ben Bernanke announced on Wednesday the scaling back of
bond-buying later this year.
The local bourse, as well as other regional bourses, reacted negatively with key indexes in these bourses declining between one and two per cent.
Share prices ended the trading week in the red as investors were reluctant to increase their holdings against the backdrop of developments in the US.
Nazri said going forward, ample local liquidity and positive local themes, such as the upcoming of mega initial public offering of Airasia X, Iskandar Waterfront and impending project news flow such as the RM20 billion high-speed train and MRT 2, could cushion market decline in the near-term.
On a Friday-to-Friday basis, the FBM KLCI slipped 6.34 points to 1,755.85 compared with last Friday's close of 1,762.19.
The Finance Index declined 24.48 points to 16,644.32, the Industrial Index decreased 23.86 points to 2,979.65 and the Plantation Index erased 302.27 points to 8,098.05.
The FBM Emas Index fell 78.49 points to 12,172.66, the FBMT100 was 65.84 points lower at 11,945.17, the FBM 70 Index dwindled 168.44 points to 13,888.32 while the FBM ACE Index improved 19.2
points to 4,773.47.
Weekly turnover slipped to 8.724 billion shares, worth RM11.063 billion compared with last week's 10.38 billion shares, valued at RM12.234 billion.
Main market volume declined to 7.428 billion units, valued at RM10.837 billion, compared with 8.854 billion shares, worth RM11.985 billion, recorded previously.
Warrants dropped to 150.208 million shares, worth RM19.034 million, versus 265.844 million units, worth RM34.803 million, registered last week.
The ACE market volume also eased to 1.137 billion shares, valued at RM203.187 million, compared with 1.244 billion shares, worth RM209.573 million, chalked up last week.-- Bernama
Discussions
7 people like this. Showing 50 of 117 comments
OTB , are u a chart expert. Why go so wrong?
And
Young man should not call themselves Sohhai and Chebai. Very distasteful
How you grandma going to call you.
2013-06-27 22:04
we do not trade on blind optimism just bcos somebody with big title says its bullish next week. we study the chart. and we only believe what we see in the chart.
2013-06-27 22:04
gradma, how I call myself is really non of your biz. otb can be wrong at times, but most time he was right. what abt that?
chart is always right. but every person can have different result based on experience, technical competence, or bias.
I still think otb is a good chartist. anytime better than the affin bank nasri.
2013-06-27 22:07
Dear Grandma,
Stock market is very difficult to predict, there is nothing wrong with our reading, it is just because market sentiment changed so fast. 360 degree changed from bearish to bullish.
I am not the only one read it wrongly, all our technical groups are also wrong this time.
I do not blame others, I do not regret what I had done. Nothing wrong with my action, the luck is just not with me. Anyway, I still make money, only make a bit less. No issue on this wrong decision.
Thank you.
Ooi
2013-06-27 22:10
Sounds like apple polishing each other. cheebai polish OTB and OTB polish Cheebai and it starts all over again. I find it hard without laughing just calling you cheebai when I write. It like cursing you unintentionally.
2013-06-27 22:10
But grandma play shares for years only now discover i3 but seem a lot complex. Anyway OTB thank you for explaining. Don't mix around with people name cheebai, very bad for you.
2013-06-27 22:13
if i must choose a person to learn bursa stock mkt from this forum, out of the so many sifus who conduct classes or recruit forumner into their own blog. i would anytime pick otb. bcos his approach is the most practical, less nonsense, and faster way of making huge money in bursa.
a remisier who survive 20yrs of stock mkt is rare. the experience and the market instinct is way ahead of those greenhorn. who r good at referring to text books.
2013-06-27 22:16
Otb lets see first 30 mins of market open tomorrow.
Stay put.
Many are bullish of a re bound like that.
2013-06-27 22:18
OMG..sooner and later...some1 call Lp will appear in this forum. Hope time proven i am wrong, then my pleasure to give u ppl a treat..hahahah
2013-06-27 22:18
thanks fatcat. charting is not 100% correct, it increase the odds. and they r some smallish stock whose syndicate r good at fabricating chart. and lead the pure chartist to fall into the trap. by either selling prematurely or buying high.
stock chart can be fabricated.
but index. is at least 30 times more difficult to fabricate.
2013-06-27 22:20
a remisier who keep telling everyone he is trading is not a good practice, beware of bursa. No offend
2013-06-27 22:21
finance report ppls even more stupid. go buy maemode la, the nta is 2.20, now is selling less than 10c.
idiot.
2013-06-27 22:21
reyes. incase u donno. remisier r licensed to advise ppls. not u or anyother. in the old time like 1990s, anyone who advise ppls on stocks without the license would be put into jail. fred tham for one. read up.
2013-06-27 22:22
cheebai,in case u misunderstood, and apparently you are. Please read back my comment.
2013-06-27 22:24
grandma, don't worry for me, i am collecting my chq of 7 figures just betting on klci collapse. and i have closed off all my position on Tuesday.
don't believe? i have already anticipated this sudden massive fall beginning of last week and i have sold off many futures contract in bursa, hk, spore, Thailand, dj, nasdaq, Taiwan, Indonesia.
sorry u can only dream to have the skill i hv in capital mkt.
2013-06-27 22:36
Dear buffetthe2nd,
Please open your eyes to see the world. Do not be so narrow minded.
I had made a study, there are 10 types of investors, Not FA make the most money. FA + TA = success formula.
Thank you.
2013-06-27 22:37
Cheebai, you must be playing virtual money. If so accurate, what's the standing next week and tomorrow.?
Don't just scold, convince.
2013-06-27 22:39
otb, he call himself buffet the2nd. cant blame him, another fools who think they can master the art of buffet.
2013-06-27 22:40
Dear Bros n Sis , V r in dis forum to share and to learn from each other. Let us all radiate loving kindness to one another as in my name Metta.
I , like u Grandma , only stumble upon dis forum a few days ago. M lucky to join in my 1st posting on E & O and Tropicana. Forumers in this thread r all so sweet n generous with their sharings.
Anger n hatred r poisonous arrows to oneself...
With Metta
2013-06-27 22:45
Seen enough, grandma read cheebais posting once and already enough to size you rability. 0
OTB, don't associate with this type of character if I see your polite approach. It gives you a bad impression. I even thought yo u created a nic just for that. I hope I am not right.
2013-06-27 22:45
Cheebai, grandma not interested in your opinion. Grandma only asking OTB. So don't sell yourself , not interested.
2013-06-27 22:49
Dear all,
Please do not jump the gun so fast, KLCI does not cross 1,783, it is not breaking higher high. Presently, it is making lower low, still a sign of down trending.
Don't be happy too fast. Just watch.
Thank you.
Ooi
2013-06-27 22:57
Fatcat you explanation is like a submachine gun answer. Can use that to fire the Cheebai. Only blowing his own libido
2013-06-27 22:57
wish all the fools here believe mkt is bullish. more easy money for me. wakakakakaaakakakaa. .
2013-06-27 23:05
Posted by tonylim > Jun 27, 2013 10:18 PM | Report Abuse
Otb lets see first 30 mins of market open tomorrow.
Stay put.
Many are bullish of a re bound like that.
Dear Tony,
Below is my answer.
Dear all,
Please do not jump the gun so fast, KLCI does not cross 1,783, it is not breaking higher high. Presently, it is making lower low, still a sign of down trending. A small rebound is not considered as up trending.
I always want market to go up, it is not possible. Please note that KLSE had been up since 26 March until 24 June without any meaningful correction. Don't be happy too fast. Just watch.
Thank you.
Ooi
2013-06-27 23:34
http://youtu.be/MVin_npzHgU
Agreed all pls behave.. wow look at DJ ! just hope our mkt not to react so much on DJ's mvments but what to do the global mkt like that, come on global mkt pls behave too... wakakakakakaka...smiles..buybackma..ho ho ho
2013-06-27 23:57
Well said Metta.
May all beings here be free from mental and physical harm
May all beings here be happy and peaceful
May all beings here be healthy and strong
May all beings here take care of themselves joyfully.
Sadhu Sadhu Sadhu
2013-07-01 12:08
Anybody heard any updates from Dr Nazri from Alliance over the weekend? Mind posting here?
2013-07-01 12:14
somebody still dont get the reason i am asking for Dr Nazri's take even though i am not interested in TA!
clue: stemmed from last week one sifu of sifus criticizing Nazri! and the sifu claims he is master of TA. quietly and not surprisingly, the donkey disappears as fast as he rose in this thread! hahahahahahahahahaha
2013-07-01 22:02
i got a copy of this :)
Posted by sohhai67 > Jun 22, 2013 04:50 PM | Report Abuse
kcloh. everybody who follow nazri would make money, if they do the opposite. I personally know him for more than 10 yrs. do u?
2013-07-01 22:03
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cheebai
fatcat. he make money la. trust me.
he make more than u and kcloh combine.
2013-06-27 21:46