KL share uptrend set to continue

Malaysian shares are set to move higher in a pre-Chinese New Year rally, analysts said.

Maybank Investment Bank Head of Retail Research Lee Cheng Hooi said the market rotational play would continue for the next two to three weeks across all sectors in small and big-cap stocks. The strong buying momentum, he said, would push the FBM Kuala Lumpur Composite Index (FBM KLCI) to the 1,305-resistance level in the near term after the 1,300-level was breached on Friday. "However, profit-taking will cap the index's upside," he added.

MIMB Investment Bank Technical Analyst Mohd Nazri Khan said the market sentiment would remain upbeat in the first half of 2010 as government stimulus packages began to make presence felt in the country's economy. He said the huge economic stimulus packages by all countries to fight the effects of global slowdown also boosted local and foreign investors' interest in stock markets. "Stimulus packages will aid market sentiment not only in FBM KLCI but global markets as well," he said. Jupiter Securities Sdn Bhd Head of Research Pong Teng Siew said the index would continue to be on the uptrend but in a slow climb until February. He said investors believed the market sentiment would remain bullish and most of them were eagerly awaiting Public Bank's earnings result and the unveiling of the new economic model -- the basis and direction of the country's economy in the future.

"FBM KLCI would trade with an upward bias as ample liquidity would keep the market buoyant," he said.

For the week just ended, the FBM KLCI added 5.6 points to end the week at 1,298.58. The Finance Index rose 90.55 to 11,330.05, the Plantation Index fell 24.62 points to 6,515.04 and the Industrial Index was 24.27 points higher at 2,716.73. The FBM Emas Index added 75.92 points to 8,771.56, the FBM Top 100 Index rose 46.74 points to 8,512.7, the FBM70 Index jumped 86.85 points to 8,612.86 and the FBM ACE Index ended the week higher by 140.63 points at 4,588.94. Total turnover increased to 8.014 billion shares worth RM9.018 billion from 6.161 billion shares valued at RM7.966 billion. Volume on the main market rose to 6.964 billion units valued at RM8.733 billion from 5.945 billion units worth RM7.706 billion. Turnover for call warrants declined to 151.238 million units worth RM27.737 million from 283.166 million units valued at RM52.822 million. The ACE Market volume advanced to 781.886 million units valued at RM213.769 million from 736.040 million units worth RM171.304 million. -- Bernama