Share prices on Bursa Malaysia are set to move higher next week on increased participation by foreign and local investors who are becoming more positive about the global economic recovery, dealers said.
According to them, the local bourse will continue to extend the uptrend in line with other markets across the region as sentiment is strong after the US Federal Reserve reported that the recession was stabilising.
The much-awaited two-day monetary policy meeting of the US Federal Open Market Committee which ended on Thursday concluded that the recession was easing and pledged to keep interest rates low.
The FBM Kuala Lumpur Composite Index (FBM KLCI) momentum remained strong and should be able to resume the uptrend which started since March this year, said MIMB Investment Bank's technical analyst Mohd Nazri Khan.
"We strongly believe the bulls have the power to bring the index to 1,200 points but need a rest," he said. Mohd Nazri said that investors should cautious on the potential correction due to the short-term overbought situation in the major indices.
"Any correction can bring the market back to anywhere between 1,100 and 1,160 points," he said.
Maybank Investment Bank Bhd's head of retail research Lee Cheng Hooi said the support level is expected to hold between 1,170 and 1,185 points, with resistance at between 1,195 and 1,185 points.
He said the market was moving towards the 1,200-point mark with direction expected to come from Wall Street movements next week.
For the week just ended, the market saw some profit-taking activities, especially on Thursday and Friday, but losses were capped by continued buying momentum on select heavyweights, mid-caps and low liners.
The market moved within the range of 1,182.45 and 1,196.46 points throughout the week, with KNM being the most active counter.
The FBM KLCI added 3.69 points to end the week at 1,188.57 although the market saw profit-taking activities. The Finance Index fell 38.84 to close the week at 9,650.19, the Plantation Index increased 315.48 points to 6,066.96 and the Industrial Index was 1.8 points lower at 2,609.05.
The FBM Emas Index added 40.27 points to 8,061.26, the FBM Top 100 Index rose 22.79 points to 7,812.54 and the newly introduced FBM ACE Index ended the week higher by 61.96 points at 4,306.47.
Total turnover for the week rose to 5.311 billion shares valued at RM7.903 billion from 4.801 billion shares worth RM7.702 billion the previous week.
Volume on the Main Market increased to 4.818 billion shares valued at RM7.801 billion from 4.197 billion shares worth RM7.572 billion previously.
The ACE Market volume dropped to 256.909 million shares valued at RM41.045 million from 410.409 million shares worth RM75.145 million last week.
Call warrants rose to 238.831 million shares valued at RM48.925 million from 167.581 million shares worth RM42.159 million previously.