Bursa Shares Likely To Be Lower Next Week

Source: Bernama.Com

KUALA LUMPUR, Aug 8 (Bernama) -- Share prices on Bursa Malaysia are expected to be lower next week as investors could go on profit taking after the rally the past few weeks, said an analyst.

"Local investors may re-enter once new market catalysts emerge," he said.

The analyst said one of the factors that could affect investors' decision next week would be the outcome of the US July employment report.

The report, to be released on Friday, would be the firmer evidence that the world's biggest economy has turned the corner.

On technical outlook, the analyst said, "a close above solid technical resistance of 1,200 is what would be needed by the bulls to reach an explosive target."

For the week just ended, the market saw the introduction of FTSE Bursa Malaysia ACE Index on Monday following changes to the MESDAQ Market as an alternative market for emerging companies of all sizes and sectors. It is now called the ACE Market.

The Main Board and Second Board were also merged into a unified board for established companies and is now known as the Main Market.

During the week, the local market sentiment was strong over optimism that the global economic slowdown led by the US has come to an end.

US President Barack Obama said that the US may be seeing the "very beginnings" of the end of the recession as the country was losing jobs at half the rate it was at the beginning of this year.

This sent the FBM Kuala Lumpur Composite Index (FBM KLCI) 9.98 points up to end the week at 1,184.88, although the market was slightly jittery ahead of the US employment report.

The Finance Index rose 133.80 to close the week at 9,689.03, the Plantation Index increased 141.88 points to 5,751.48 and the Industrial Index was 34.87 points higher at 2,610.85.

The FBM Emas Index added 101.20 points to 8,020.99, the FBM Top 100 Index rose 83.70 points to 7,789.75 and the newly introduced FBM ACE Index ended the week at 4,244.55.

Total turnover for the week fell to 4.801 billion shares worth RM7.702 billion from 5.457 billion shares worth RM8.236 billion a week before.

Volume on the Main Market stood at 4.197 billion units worth RM7.572 billion while the ACE Market volume was at 410.409 million units worth RM75.145 million.

The volume of call warrants declined to 167.581 million units worth RM42.159 million from 195.933 million units worth RM40.220 million the previous week.