KL bourse set for a bull-run

Malaysian shares are likely to move higher next week with the current bullish outlook in global equity markets.

Technical analyst of MIMB Investment Bank, Nazri Khan said the market was ready for a bull-run with the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) immediate target at 1,250.

"Strong overall bullish performance in global markets will drive sentiment on the local bourse," Khan said.

Increasing signs of the global economic recession coming to an end will boost global markets, he said.
Even though the stock market will see a shorter trading period next week due to the Hari Raya holidays, the market's uptrend is expected to remain intact, Khan said.
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"Baby bulls with legs will start to appear for the local bourse as overall strength in Asian stocks such as the Bombay Stock Exchange Index, Sensex will provide the catalyst," he added.

There may be corrections, but investors should start to accumulate stocks for a longer term position in view of further upside potential by the end of this year.

Asian stocks rose to a new high on Thursday with stock markets in Hong Kong and South Korea surging to new highs after the rally on US stocks following positive economic data in the US and renewed confidence of a recovery in the global economy.

On Bursa Malaysia, shares were mostly higher during the week with the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) hitting a 52-week high of 1,218 on Thursday.

The market ended the week on a high note, with FBM KLCI finishing at 1,221.20, the highest level seen since June 30, 2008.

On a Friday-to-Friday basis, the FBM KLCI ended 12.92 points higher at 1,221.20 while the FBM Emas Index surged 102.11 points to 8,224.88.

The FBM Top 100 Index advanced 102.57 points to 8,017.07, the FBM 70 gained 174.28 points to 8,156.62 and the FBM ACE Index increased 9.36 points to 4,089.1.

The Finance Index surged 167.36 points to 10,017.25, the Plantation Index rose 2.9 points to 5,957.28 and the Industrial Index increased 20.85 points to 2,660.52.

Turnover rose to 3.551 billion shares worth RM5.65 billion from 3.313 billion shares worth RM5.717 billion last week.

Volume on the Main Market rose to 3.175 billion shares worth RM5.568 billion from 2.815 billion shares worth RM5.579 billion last week.

The ACE market volume decreased to 218.489 million shares worth at RM45.694 million from 267.363 million shares valued at RM64.459 million last week.

Call warrants volume decreased to 135.118 million units worth RM31.927 million from 204.205 million units worth RM61.759 million last week.-- Bernama