November 21, 2009 12:22 PM

BURSA MALAYSIA: Bursa Shares To Consolidate Next Week

KUALA LUMPUR, Nov 21 (Bernama) -- Share prices on Bursa Malaysia are expected to consolidate further next week as investors are concerned the recent global rally could have been factored into the economic rebound.

Locally, the listing of Maxis Bhd on Tursday absorbed some liquidity from the market, said Jupiter Securities Head of Research Pong Teng Siew.

"So, the market will see a bit of consolidation for now," he said, adding that the underlying sentiment was mixed, especially after Wall Street's dismal performance.

He also said uneasiness may creep into the New York market and predicted that profit taking may emerge in local blue chip stocks, especially banking counters, which were in an overbought position.

" The better-than-expected growth rate will give some boost, but this is an much anticipated number amid the government's stimulus packages," he said.

The Malaysian economy registered an improvement in the third quarter with a reduced contraction of 1.2 per cent in the third quarter of 2009 compared with a 3.9 per cent decline in the second quarter amid positive growth in domestic demand and stable external demand.

Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz, in announcing the Gross Domestic Product (GDP) figures, said the growth impetus emanated mainly from domestic demand, as a result of stronger private consumption and higher public sector spending.

This brings the overall growth for the first nine months of 2009 to -3.8 per cent.

On the market barometer's outlook next week, Pong said the market's immediate support and resistence level were pegged at 1,268 and 1,284, respectively.

" Immediate resistance remains at 1,288 with the April 29, 2008 pivot high of 1,305 posing a significant upside hurdle," said TA Securitie in its research note.

The week saw Southeast Asia's largest initial public offer by telecommunication giant, Maxis Bhd, which opened for a premium of 46 sen at RM5.46 over its offer price of RM5.

Maxis, which topped both the active and gainers list on its first trading day, ended the week at RM5.37, down five sen with 74.677 million shares changing hands.

On a Friday-to-Friday basis, the FBM KLCI was up 3.4 points to 1,274.36.

The FBM Emas Index climbed 16.03 points to 8,504.86, the FBM Top 100 Index have up 29.69 points to 8,310.7 but the FBM ACE Index plunged 87.25 points to 4,436.62. The Finance Index surged 77.84 points to 10,005.14.

The Plantation Index rose 41.23 points to 6,220.55 but the Industrial Index declined 12.12 points to 2,685.86.

A total of 5.272 billion shares, worth RM7.393 billion, changed hands for the week just ended, up from 5.072 billion shares valued at RM5.937 billion, previousy.

However, volume on the main market shed to 4.277 billion shares, worth RM6.001 billion, against last week's 4.441 billion shares worth RM5.766 billion.

The volume of call warrants perked to 87.892 million units, worth RM20.027 million, versus last week's 78.166 million units valued at RM17.025 million previously.

The ACE Market volume also jumped to 927.24 million shares worth RM209.367 million from 477.619 million shares valued at RM166.694 million the week before.

-- BERNAMA

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