Dealer: Positive movement seen in KL market this week - The Star Biz

SHARE prices are expected to be range-bound this week amid an underlying cautious sentiment due to external factors, particularly China's monetary policy, said a dealer.

He said China would probably raise the Required Reserve Ratio (RRR) and rumours surrounding this, had caused further concern in the market.

We will also be looking at the US economic numbers pouring in next week. Coupled with global uncertainties, such as the Korean conflict and euro debt woes, it is expected to continue influencing the market, he added.

On the local front, the dealer said there would not be any major market moving factor and this would give it a positive momentum.

Meanwhile, Affin Investment Bank's Head of Retail Research, Dr Nazri Khan said, he expects the local stock market to continue consolidating sideways in the range of between 1,490 to 1,510 this week, albeit with more cautious trading.

Barring any close below 1,460, we view any weakness as an opportunity to re-enter cheaper, as the monthly uptrend line remains sound and intact.

For the week just-ended, the FBM KLCI Index closed at 1,492.05, down 14 points from 1,506.05, previous Friday. On a Friday-to-Friday basis, the FBM KLCI closed at 1,489.86, rising 8.45 points from 1,481.41 previously.

The Finance Index dwindled 151.16 points to 13,605.32, the Industrial Index lost 24.26 points to 2,851.26 and the Plantation Index narrowed 91.51 points to 7,667.23.

The weekly volume increased to 6.179 billion shares valued at RM11.315bil compared with the 4.56 billion shares worth RM6.166bil, transacted the previous week.

The main market turnover rose to 5.078 billion shares worth RM11.129bil from 3.932 billion units valued at RM6.006bil previously. Bernama