FBM KLCI likely to zoom higher

The FTSE Bursa Malaysia KLCI (FBM KLCI) is likely to be firmer next week boosted by positive global economic news especially from the US, China and Japan.

Vice-president/head of retail research of Affin Investment Bank, Dr Nazri Khan, said the Malaysian equity market will zoom higher from a number of positive events with the global equities holding onto strong December gains despite being overbought and the holiday-shortened session.

Bursa Malaysia will close on Tuesday for Christmas holiday.

"We note that both MSCI All World and the FTSE All-World are near 17-month highs, with the US stock benchmark sits just below its best levels in almost five years while the local index FBM KLCI is just 15 points below its all-time high.

"We believe equities have been rallying on the back of better recent global economic data, central bank support, easing eurozone stress and building hope that a US budget deal can be reached to prevent the US falling off the fiscal cliff," he said.

He said the immediate resistance was currently pegged at 1,680 level while support was seen at 1,650-level.

"Barring any close below 1,630, we view any weakness as an opportunity to re-enter the market as the monthly, weekly and daily uptrend lines remained sound and intact.

"Given ample liquidity and rising foreign net equity flow, we are not surprised to see FBM KLCI aiming higher for 1,680-level.

"Any close above 1,680 will lead FBM KLCI to a good bull rally towards an all-time high of 1,720-1,750 in the early part of next year," he said.

For the week just-ended, the FBM KLCI rose 6.87 points to 1,658.85 from 1,651.98 previously.

The Finance Index surged 64.83 points to 15,191.6 and the Industrial Index gained 10.72 points to 2,717.32.

The Plantation Index slipped 5.94 points to 7,979.52.

The FBM Emas Index jumped 35.04 points to 11,237.17, FBMT100 rose 36.8 points to 11,096.6 and the FBM ACE Index shoot up 72.47 points to 4,200.7.

The FBM 70 Index shed 3.33 points to 12,089.75.

Weekly turnover fell to 3.874 billion shares worth RM6.569 billion from the 4.31 billion shares worth RM7.6 billion last Friday.

The Main Market volume eased to 2.877 billion units valued at RM6.402 billion from the 3.48 billion units valued at RM7.47 billion previously.

The ACE market volume dipped to 771.098 million shares worth RM139.984 million from the 624.28 million shares worth RM106.93 million last week.

Warrants declined to 222.394 million units valued at RM25.742 million from 187.12 million units valued at RM18.98 million. -- BERNAMA