KL shares to see technical rebound

Share prices on Bursa Malaysia are expected to stage a technical rebound next week in the absence of market-moving news, analysts said.

They said the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM-KLCI) was expected to drift higher to 1,320-level with mild intermittent bargain-hunting along the way.

An analyst said the investors would also assess the impact of the US stocks, which were expected to recover further, indicating the US economy was returning to the growth path.

"Wall Street is expected to extend its rally. It is expected to go up to as high as 10,700 points as risk appetite emerges in the world markets," he said.

On Friday, the FBM-KLCI nearly broke the resistance at 1,300 points, supported by Wall Street rally. It gave up some of the earlier gains to close at 1,294.67.

Meanwhile, the announcement of the 10th Malaysia Plan (10MP) by Prime Minister Datuk Seri Najib Tun Razak received muted response from the market, as most players had already discounted its impact.

OSK Research, in its note, said construction, property and utilities-related stocks would would benefit from the 52 high-impact projects worth RM63 billion unveiled under the 10MP.

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