R u ready to SELLLLLLLLLLLLLLLLLLLLL
Share prices on Bursa Malaysia may see more pullback next week on follow-through weaknesses in the regional market amid concerns of more interest rate hike and renewed worries on the euro zone crisis. "The market may experience more pullback next week as China seems to have a currency war against the US and impose further tightening to their monetary policy," Affin Investment Bank's head of retail research Dr Nazri Khan said. After reaching multi-year and hictoric highs, all key regional, including the FBM KLCI and European markets dipped on Friday in a jittery reaction to possible increase in interest rates as well as worries about Ireland's debt. Although it is not worrisome locally, he said, the market will now need to watch the performance of India's 30-share benchmark index, BSE Sensex. "I
ndia's stock market is seen as more stronger than China. So, we have to watch if it dips further and assess from there onwards," he said. The BSE Sensex ended the week 432.2 points or 2.3 per cent lower to 20156.89 as concerns over Ireland's debts triggered a selloff in riskier assets. Elsewhere, chief executive of the Hong Kong Special Administrative Region, Donald Tsang was quoted as saying that investors should brace for massive market volatility amid growing signs the world economy still faces multiple risks. "We may be out of the eye of the storm but we certainly remain in a dangerous storm," he was quoted as saying at the APEC forum. Meanwhile, OSK Research's head of research Chris Eng said that the profit-taking in the local bourse is a much anticipated one after the recent rise. Last Wednesday, the US Federal Reserve announced that it would inject additional US$600 billion in the country's economy. "We also believe there is a potential for the third quarter 2010 results to generally underperform expectations and trigger more downgrades, except for the banking, consumer, plantations and aviation sectors," it said. Hence, it recommended that investors look at the defensive consumer stocks which are not in foreign investors' radar screens. OSK Research also maintained its year end target for the benchmark 30-stock FBM KLCI index at 1,496, while the current strong support at 1,479.
Meanwhile, Nazri said Affin saw strong support at 1,450 for FBM KLCI. During the week just ended, the stock exchange's composite index surged to a historic high of 1,528.01 on continued inflow of foreign funds, especially from the United States. It also touched an intra-day high of 1,531.99. Despite surging to a new all time high, the FBM KLCI closed trade this week 11.93 points lower at 1,499.81 compared with 1,511.74 the previous week. The Finance Index added 56.23 points to 13,816.61 compared with the week before, while the Plantation Index surged 55.43 points to 7,771.76 but the Industrial Index slipped 45.3 points to 2,859.58. The FMB Emas Index dipped 53.52 points to 10,177.84, the FBM Top100 shed 66.18 points to 9,918.9 but the FBM Ace Index rose 210.81 points to 4,654.9. The total weekly turnover soared to 8.204 billion shares valued at RM11.334 billion from 5.075 billion shares valued at RM6.168 billion last week. The Main Market volume increased to 7.067 billion units worth RM11.048 billion from 4.428 billion units worth RM4.610 billion previously. Volume on the ACE Market rose to 566.774 million shares valued at RM150.52 million from 302.470 million shares valued at RM93.093 million. Warrants surged to 577.634 million units valued at RM117.75 million from 208.815 million units valued at RM38.549 million. -- Bernama