News for 28/3/11

By Adeline Paul Raj Published: 2011/03/28 KL bourse's upward trend may continue The Malaysian stock market is expected to continue its upward climb this week albeit at a slow pace, with investors focused on small- to mid-sized stocks. Last week, despite concerns about the impact of an earthquake and tsunami on Japan, a war in Libya and high oil prices, the benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) gained 0.8 per cent week-on-week to 1,515.55 points.Wall Street too was up, with the Dow Jones Industrial Average gaining 3 per cent to close the week at 12,220.60, boosted mainly by a stronger corporate earnings trend and a drop in jobless claims."Some semblance of price stability has returned, but the local market remains uninspiring."The FBM KLCI is creeping up slowly as a result, while world markets climb the 'Global Walls of Worry'," Maybank Investment Bank's (MIB) head of retail research Lee Cheng Hooi said in a note to clients last Friday. He expects the index to remain in "a minor rebound" mode in the short term and to be bearish in the medium term.Vivian Loh, a fund manager at TA Asset Management Bhd, said the market should be "sustainable" this week, barring any shocks on the external front."Local fund managers are not buying in a big way, but seem quite determined to hold up the market," she remarked.Selected small- and mid-capitalised stocks are expected to continue to be in play this week, as will some speculative stocks, and these will outperform blue chips. These include election-related stocks in the construction, infrastructure, and oil and gas sectors. Stocks that MIB deems to be on an uptrend include AirAsia, APM Automotive Holdings, Cypark Resources, Boustead Holdings, Esso Malaysia, Petronas Chemicals Group and Yi-Lai. It sees obvious support for the index at 1,513 and resistance at 1,529. Read more: KL bourse's upward trend may continue http://www.btimes.com.my/Current_News/BTIMES/articles/btb25/Article/index_html#ixzz1HqdRc3WD