FBM KLCI set to bounce back
Analysts believe this week to be interesting as most regional indices, including the FBM KLCI, are close to testing their year-to-date lows.
KUALA LUMPUR: Although Bursa Malaysia is set to face another week of volatile trading due to the absence of positive news in the global front, the benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) could stage a technical rebound.
HwangDBS Vickers Research said US equities were up on hopes that Europe would work to prevent a Greece collapse, while China might consider buying European sovereign bonds. This could help raise sentiments in Asia.
Analysts believe this week to be interesting as most regional indices, including the FBM KLCI, are close to testing their year-to-date lows.
For the FBM KLCI, a strong rebound from the key support level of 1,400 points may suggest a reliable bottom in progress. The fact that the index is currently down by 11 per cent on the past 11 losing weekly sessions may suggest an oversold rebound is imminent.
However, the absence of positive news will continue to haunt investors and keep them on the sidelines, while awaiting fresh direction, before deciding whether to step into the market.
At the local front, although presently external factors continue to overweigh internal factors, the market is likely to see some improvement with the anticipation of a people-friendly Budget 2012 to be tabled by Prime Minister and Finance Minister Datuk Seri Najib Razak on October 7.
Last week, the FBM KLCI dropped 38.19 points to 1,430.93.
The holiday-shortened week saw total market volume decrease to 2.88 billion shares valued at RM4.88 billion from 3.5 billion shares valued at RM6.29 billion previously.
Bursa Malaysia was closed on Friday for the Malaysia Day holiday.
Stocks in focus this week include Proton Holdings Bhd, due to news that it is close to signing a collaboration agreement with Mitsubishi Motor Corp (MMC) to utilise the former's production facility.
The two groups are considering joint production of engines in Malaysia and production of MMC-brand vehicles at Proton's plants under their proposed strategic collaboration.
Other stocks in focus are Tenaga Nasional Bhd, Catcha Media Bhd and Cypark Resources Bhd.
By Azlan Abu Bakar
KUALA LUMPUR: Although Bursa Malaysia is set to face another week of volatile trading due to the absence of positive news in the global front, the benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) could stage a technical rebound.
Analysts believe this week to be interesting as most regional indices, including the FBM KLCI, are close to testing their year-to-date lows.
For the FBM KLCI, a strong rebound from the key support level of 1,400 points may suggest a reliable bottom in progress. The fact that the index is currently down by 11 per cent on the past 11 losing weekly sessions may suggest an oversold rebound is imminent.
However, the absence of positive news will continue to haunt investors and keep them on the sidelines, while awaiting fresh direction, before deciding whether to step into the market.
At the local front, although presently external factors continue to overweigh internal factors, the market is likely to see some improvement with the anticipation of a people-friendly Budget 2012 to be tabled by Prime Minister and Finance Minister Datuk Seri Najib Razak on October 7.
Last week, the FBM KLCI dropped 38.19 points to 1,430.93.
The holiday-shortened week saw total market volume decrease to 2.88 billion shares valued at RM4.88 billion from 3.5 billion shares valued at RM6.29 billion previously.
Bursa Malaysia was closed on Friday for the Malaysia Day holiday.
Stocks in focus this week include Proton Holdings Bhd, due to news that it is close to signing a collaboration agreement with Mitsubishi Motor Corp (MMC) to utilise the former's production facility.
The two groups are considering joint production of engines in Malaysia and production of MMC-brand vehicles at Proton's plants under their proposed strategic collaboration.
Other stocks in focus are Tenaga Nasional Bhd, Catcha Media Bhd and Cypark Resources Bhd.
By Azlan Abu Bakar
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