Malaysia shares set to another rally
Share prices on Bursa Malaysia are expected to extend gains next week following news that the government will announce a string of new investments to spur the country's growth with an easing of worries on the external front providing an additional boost.
Prime Minister Datuk Seri Najib Tun Razak said yesterday that he would be unveiling more investments in the next few months to spur growth and consider slowing subsidy cuts to shield consumers from rising prices.
Najib has so far announced 20 projects under the Economic Transformation Programme (ETP), to bring in a total of RM14.74 billion in investments, RM20 billion in Gross National Income and 88,354 more jobs.
Jupiter Securities head of research Pong Teng Siew said the market is set for another rally, similar to the one seen earlier in the year, whereby the FTSE Bursa Malaysia KLCI (FBM KLCI) touched a historic back-to-back high.
"I am confident there is going to be a substantial upsurge going into April and till early May," he added.
He said Jupiter's year-end target of a 1,640 level for the market's barometer may happen in mid-year itself, meaning, investors are expected to be more aggressive.
Echoing Pong, Head of Retail Research, Affin Investment Bank, Dr Nazri Khan said given the high volume and steep rebound, correction is likely done and the FBM KLCI is set to test the all time intra-day high of 1,576 in the near term.
The fact that the FBM KLCI saw a 5.2 per cent gain quarter-on-quarter -- eight positive straight quarters since the second quarter of 2009 -- despite Japan's nuclear crisis and the Middle East uprisings, confirms that Malaysia has a resilient economy to trend higher and overcome the global trouble spots.
"We expect more portfolio repositioning next week (the start of the second quarter 2011) to add more upside on market activity," he told Bernama.
He said the investment bank also reckons the G-20 proposal to have a wider role for the yuan in global finance will be beneficial for a stronger ringgit and local market sentiment.
"We believe in the ability of the FBM KLCI to stay above 1,550 (a ten-week high) and the financial sector index to significantly surge, especially now with signs that the risk taking appetite is returning," he added.
Nazri, however, pointed out four downsides going forward into the second quarter,namely, China tightening bank lending rates, the European debt crisis with focus on Irish and Portuguese government's finances, a high oil price above the US$100 per barrel and the US Federal Reserve concluding its second round of quantitative easing and its impact on economic momentum.
"Given the steady global economic data and stronger international cooperation, we however believe, the risk is minimal," he said.
Trading wise, the investment bank continued to choose the finance sector with stocks such as RHB Capital, Alliance Financials, BIMB Holdings and MAA Holdings as its best picks for a three-month holding time frame.
For the week ended, the FBM KLCI finished 39.83 points or 2.62 per cent higher to settle at 1,555.38 compared with last Friday's 1,515.55.
The FTSE Bursa Malaysia Emas Index increased 269.63 points to 10,686.56, the FTSE Bursa Malaysia Ace Index added 97.86 points to 4,321.4 and the FTSE Bursa Malaysia Mid 70 Index gained 235.12 points to 11,418.08.
The Finance Index increased 411.53 points to 14,148.11, the Plantation Index earned 85.23 points to 7,834.28 and the Industrial Index gained 29.91 points to 2,845.98.
The weekly volume surged to 8.841 billion shares valued at RM11.383 billion, from the 6.125 billion shares valued at RM8.214 billion, last Friday.
The main market turnover increased to 7.374 billion shares, valued at RM10.665 billion from the 5.1 billion units valued at RM8.02 billion, registered last week.
The volume on the ACE Market rose to 706.12 million shares worth RM135.57 million,from the 494.12 million shares worth RM89.7 million, previously.
Warrants climbed to 723.343 million units worth RM183.257 million, from 507.01 million units, valued at RM99.95 million at the end of last week. -- Bernama
Prime Minister Datuk Seri Najib Tun Razak said yesterday that he would be unveiling more investments in the next few months to spur growth and consider slowing subsidy cuts to shield consumers from rising prices.
Jupiter Securities head of research Pong Teng Siew said the market is set for another rally, similar to the one seen earlier in the year, whereby the FTSE Bursa Malaysia KLCI (FBM KLCI) touched a historic back-to-back high.
"I am confident there is going to be a substantial upsurge going into April and till early May," he added.
He said Jupiter's year-end target of a 1,640 level for the market's barometer may happen in mid-year itself, meaning, investors are expected to be more aggressive.
Echoing Pong, Head of Retail Research, Affin Investment Bank, Dr Nazri Khan said given the high volume and steep rebound, correction is likely done and the FBM KLCI is set to test the all time intra-day high of 1,576 in the near term.
The fact that the FBM KLCI saw a 5.2 per cent gain quarter-on-quarter -- eight positive straight quarters since the second quarter of 2009 -- despite Japan's nuclear crisis and the Middle East uprisings, confirms that Malaysia has a resilient economy to trend higher and overcome the global trouble spots.
"We expect more portfolio repositioning next week (the start of the second quarter 2011) to add more upside on market activity," he told Bernama.
He said the investment bank also reckons the G-20 proposal to have a wider role for the yuan in global finance will be beneficial for a stronger ringgit and local market sentiment.
"We believe in the ability of the FBM KLCI to stay above 1,550 (a ten-week high) and the financial sector index to significantly surge, especially now with signs that the risk taking appetite is returning," he added.
Nazri, however, pointed out four downsides going forward into the second quarter,namely, China tightening bank lending rates, the European debt crisis with focus on Irish and Portuguese government's finances, a high oil price above the US$100 per barrel and the US Federal Reserve concluding its second round of quantitative easing and its impact on economic momentum.
"Given the steady global economic data and stronger international cooperation, we however believe, the risk is minimal," he said.
Trading wise, the investment bank continued to choose the finance sector with stocks such as RHB Capital, Alliance Financials, BIMB Holdings and MAA Holdings as its best picks for a three-month holding time frame.
For the week ended, the FBM KLCI finished 39.83 points or 2.62 per cent higher to settle at 1,555.38 compared with last Friday's 1,515.55.
The FTSE Bursa Malaysia Emas Index increased 269.63 points to 10,686.56, the FTSE Bursa Malaysia Ace Index added 97.86 points to 4,321.4 and the FTSE Bursa Malaysia Mid 70 Index gained 235.12 points to 11,418.08.
The Finance Index increased 411.53 points to 14,148.11, the Plantation Index earned 85.23 points to 7,834.28 and the Industrial Index gained 29.91 points to 2,845.98.
The weekly volume surged to 8.841 billion shares valued at RM11.383 billion, from the 6.125 billion shares valued at RM8.214 billion, last Friday.
The main market turnover increased to 7.374 billion shares, valued at RM10.665 billion from the 5.1 billion units valued at RM8.02 billion, registered last week.
The volume on the ACE Market rose to 706.12 million shares worth RM135.57 million,from the 494.12 million shares worth RM89.7 million, previously.
Warrants climbed to 723.343 million units worth RM183.257 million, from 507.01 million units, valued at RM99.95 million at the end of last week. -- Bernama
Comments
Post a Comment