ZLBT looks at the week ahead >>> FBMKLCI Rock Steady

THE WORST COULD BE OVER
Nuclear Crisis & Arab Flashpoints Loom In The Shadow
The uptrend on Bursa Malaysia is likely to extend into next week with positive overseas developments prompting continued buying interest on the local front. The FBMKLCI is anticipated to continue trending higher towards the 1,530-1540 points resistance zone as investors react positively to regional news flow. But as a precautionary reminder, global markets are still hostages to any sudden negative newsbreak from Japan and the Middle East where Syria is the latest hair trigger situation. Radiations fallout fears and Arab uprisings still rule the day.

Given the fact that the bluechips index stayed above the 1,500 points level, after rising virtually seven straight days, showed that worries over the impact of the disaster in Japan on the rest of Asia has eased. Some degree of pessimism, however, still lingers at the mindset of investors which is the option rather than the norm.

However, it can be safely assumed (barring any unforeseen circumstances) the analytical beliefs, technically, the local market recovery from the March 11 sell-off was completed as the FBMKLCI had reclaimed the price level just before the Japanese tsunami selling started from 11th March 2011.

Furthermore, the stable Wall Street with the Dow breaking above the 12,000 level and with Nikkei rebounding 16 per cent also suggested that the sentiment had improved.

The numbers emissions noted that the trading sessionx has progressed with selling into strength dwindling and buying into weakness starting to rise in anticipation of more upside from solid first-quarter profits and impending General Elections speculated for this year as any GE rumours can only further boost the maket.

Sarawak starts the ball rolling ....
The looming Sarawak election would also favour Sarawak-based timber, oil and gas, and plantation shares such as Jayatiasa, Dayang and Sarawak Plantation.

This week, the FBM KLCI finished higher to settle at 1,515.55 compared with last Friday's 1,498.50 as demand bolstered from positive Wall Street and Asian cues as well as corporate news flow.

The FTSE Bursa Malaysia Emas Index increased 145.81 points to 10,416.93, the FTSE Bursa Malaysia Ace Index added 237.38 points to 4,223.54 and the FTSE Bursa Malaysia Mid 70 Index gained 274.66 points to 11,182.96.
The Finance Index increased 172.21 points to 13,736.580, the Plantation Index rose 68.74 points to 7,749.050 and the Industrial Index gained 31.04 points to 2,816.070.

The weekly volume surged to 6.125 billion shares, valued at RM8.214 billion, from 5.1 billion shares, valued at RM7.74 billion, last Friday.

The Main market turnover increased to 5.1 billion shares, valued at RM8.02 billion, from 4.1 billion units, valued at RM7.56 billion, registered last week.

HAPPY TRADING