Bullish trend expected to extend

The market was expected to pull back for profit taking but the market continued to be supported and the index closed higher. Bullish markets performances globally has helped boost market confidence. Foreign institutions kept selling but the support came from local institutions.

The FBM KLCI increased 0.8 per cent in a week to 1,769.14 points last Friday.

Trading volume has increased last week especially for lower-capped stocks. The average daily trading volume increased to 3.2 billion shares from 2.7 billion shares two weeks ago but the average daily trading value remained firm at RM2.7 billion.

Net sell from foreign institutions was RM498 million while net buys from local institutions and local retail were RM487 million and RM12 million respectively.

In the FBM KLCI, gainers outpaced decliners 11 to three. The top three gainers were Westports Holdings Bhd (8.1 per cent in a week to RM3.73), MISC Bhd (4.6 per cent to RM6.55) and Petronas Dagangan Bhd (4.1 per cent to RM26.86).

The top three decliners were Dialog Group Bhd (5.1 per cent to RM3.14), Genting Bhd (1.7 per cent to RM8.70) and Hong Leong Financial Group Bhd (1.1 per cent to RM18.00).

Asian markets were generally bullish last week. The Hong Kong Hang Send Index, which fell for weeks has started to rebound and this led to stronger confidence in the Asian markets. European and US markets continued to be bullish. The US Dow Jones Industrial Average rose to its highest level in five months.

The US dollar has slightly strengthened against major currencies. The US dollar Index closed at 94.7 points last Friday as compared to 94.5 points the week before. The Malaysian ringgit remained firm against the US dollar at RM4.06 to a US dollar.

Commodities prices ended generally lower last week. Gold (COMEX) remained slightly bearish and fell

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