Bursa Malaysia Next Week : don't take up heavy positions?
The market was closed on Dec 25 for Christmas and will be closed again next Friday, January 1, 2010 for the New Year.
However, dealers said sentiment is expected to be positive buoyed by the US stock market which closed Thursday at the year's high.
It was supported by data showing a drop in initial jobless claims and growth in durable goods orders which suggested the economic recovery in the United States was picking up momentum.
Accordingly, dealers expect the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) to head north and hover between the 1,270 and 1,290 points level next week.
"We foresee technical indicators to remain bullish over the longer-term, with the 1,300 points level as the ultimate target," one dealer said, adding the local bourse would be blessed by the weakening US dollar which would encourage investors to shift funds to Asia for higher yields.
The U.S. dollar, which dipped 0.08 per cent against a basket of major currencies, is expected to push commodity prices higher.
Hence, stock maket punters would be on the look out for commodity-related stocks given the positive demand for the commodity amid tight supply.
The property sector will also be "in demand" following the revision of the real property gains tax policy.
Prime Minister Datuk Seri Najib Tun Razak announced on Wednesday that the tax would only be applicable now for properties that are sold within five years of their purchase.
For the holiday-shortened week, the market saw Yoong Onn Corp Bhd, an integrated designer, manufacturer and distributor of home linen, made its debut on the Main Market for a two sen premium over its offer price of 88 sen.
Throughout the week, trading was moderate with the FBM KLCI moving within the 1,255 and 1,265 points level.
On a Thursday-to-Thursday basis, the FBM KLCI slipped 6.44 points to 1,260.53 from last week's 1,266.97.
The FBM Emas Index decreased 39.51 points to 8,393.48, the FBM Top 100 Index declined 41.70 points to 8,213.55 and the FBM70 Index fell 39.97 points to 8,113.38.
However, the FBM Ace Index rose 23.02 points to 4,218.52.
The Finance Index was 104.55 points lower at 10,880.50, the Plantation Index thumbled 78.33 points to 6,280.09 and the Industrial Index eased 16.33 points to 2,656.77
A total of 1.714 billion shares, worth RM2.713 billion, changed hands during the week compared with 2.388 billion shares worth RM3.456 billion traded previously.
Volume on the main market fell to 1.471 billion shares, valued at RM2.656 billion, against last week's 1.889 billion shares valued at RM3.328 billion.
However, turnover for call warrants declined to 46.024 million units, worth RM6.693 million, versus last week's volume of 73.442 million units worth RM11.860 million.
The ACE Market volume slipped to 140.415 million shares, valued at RM35.003 million, from 273.072 million shares worth RM95.118 million registered last week. - AP