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Analysts expect market to consolidate this week
PETALING JAYA: Profit-taking is likely to extend into this week following the benchmark FBM KLCI's gains earlier last week.
Analysts said the market would continue to consolidate this week after the index closed at 1,528.01 points on Wednesday, the highest in almost two years and since the global financial crisis started.
An analyst said this would be in tandem with regional markets, which have also seen profit-taking activities over the past few days.
Furthermore, news would likely be thin on the ground this week except for companies reporting their quarterly financial results for the period ending Sept 30, which are not expected to surprise on the upside.
"The market may be in the mood for consolidation or profit-taking," a technical analyst at a foreign investment bank told StarBiz.
He said investors had been quite spoilt as the market had had a "very nice run" since the end of May.
On Friday, the FBM KLCI closed 0.92% lower at 1,499.81 points, with Genting Bhd the lagging mover while Genting Malaysia Bhd was up.
There were 1.72 billion shares traded with a total turnover of RM2.39bil.
Other index-linked stocks that fell included CIMB Group Holdings Bhd although other financial stocks saw gains, including Malayan Banking Bhd, which posted a 16.6% rise in first-quarter net profit versus a year earlier.
TA Securities Holdings Bhd technical manager Stephen Soo said profit-taking activities would follow the upward movement of blue-chip stocks.
He said profit-taking activities were evident in the broader market since the middle of last week. "It's a good sign as the volume and liquidity were there; the broader market was negative but vibrant," Soo said.
He added that rotational plays in the various sectors were also healthy with all stocks moving up.
"There were healthy rotational plays even among the lower liners and small-caps," Soo observed.
He said the market's new support was at the 1,500-level with the upside capped at 1,532 points.
- The Star Online |
