Contrary to Negative Rumours, FBM KCLI Likely To Be Stable Next Week

As oppose to what have been the recent rumours saying that our Index will hardly move, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to stabilise and stage a mild rebound next week on stronger bargain hunting activity.

The local bourse would also be influenced positively by the bullish global economic data as well as improved regional sentiments, Affin Investment Bank vice-president/head of retail research, Dr Nazri Khan said. 

Saying that the strong rebound on Friday as reliable and fortified by the broad index gains. Hence, will be expecting trading momentum to pick up and bargain hunting to accelerate following volatile trading conditions.

Nazri also said the growing uncertainty over the outlook for monetary policy in the US would likely continue to weigh on market sentiment next week.

However, he said any policy statement and results that come from the US Federal Reserve's next policy meeting, on June 18-19, would provide a clearer direction for investors.

On the local front, he said the latest government incentives for qualified business investors and foreign fund managers, like proposal of multiple entry visas, were positive measures to boost inward portfolio investments and increase Bursa Malaysia's liquidity.

Prime Ministers Datuk Serio Najib Tun Razak's urging for goverment-linked investment companies to play an important role in small and medium enterprises (SME) would also increase market strength for lower liner mid-cap stocks. Thus, investors are advised to start accumulating and should anticipate advancement in local stocks.

Moreover, Investors can also still find value in some of the undervalued bluechips like Maybank, Petronas Chemicals, TNB, Genting and RHB Cap.

For the week just-ended, sentiment had been battered this week after Japan's central bank held off unveiling any new monetary easing measures, pushing demand to the sidelines.

On a Friday-to-Friday basis, the benchmark FBM KLCI ended 13.4 points lower at 1,762.19.

The Finance Index lost 268.53 points to 16,668.8, the Industrial Index slipped 24.29 points to 3,003.51 but the Plantation Index rose 59.61 points to 8,400.32

The FBM Emas Index decreased 135.97 points to 12,251.15, the FBMT100 fell 130 points to 12,011.01, and the FBM Mid 70 dropped 308.29 points to 14,056.76.

However, the FBM Ace Index gained 67.03 points to 4,754.27.

Weekly turnover rose to 10.38 billion shares worth RM12.234 billion from 10.11 billion shares valued at RM11.12 billion last week.

Main market volume expanded to 8.854 billion shares worth RM11.985 billion, from 7.8 billion units valued at RM10.73 billion last week.

Warrants advanced to 265.844 million units worth RM34.803 million from 255.75 million units valued at RM35.6 million.

The ACE market volume, however, declined to 1.244 billion shares worth RM209.573 million from 2.03 billion shares valued at RM351.21 million previously.

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