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Monday, April 4, 2011

ZLBT Morning Views >>> Bursa Malaysia

Rally May Run Out Of Steam For Malaysian Market The Malaysian stock market has finished higher now in four straight sessions, collecting more than 40 points or 2.6 percent in the process. The Kuala Lumpur Composite Index finished just above the 1,555-point plateau, although now traders may be tempted to lock in gains when the market opens on Monday.

The global forecast for the Asian markets is mixed with a touch of upside - although many of the regional bourses are now riding lengthy winning streaks and are seriously overbought, suggesting correction. Fears of interrupted oil production add to the weakened sentiment, although technology and property stocks are likely to provide support. The European and U.S. markets finished higher on Friday, although now the Asian markets are tipped to see less success.
The KLCI finished modestly higher on Friday on gains from the financial shares, industrial issues and plantation stocks.
For the day, the index added 10.25 points or 0.6 percent to finish at the daily high of 1,555.38 after dipping as low as 1,547.04. Volume was 1.518 billion shares worth 2.152 billion ringgit. There were 517 gainers and 319 decliners, with 271 stocks finishing unchanged.

Among the actives, Genting Malaysia, Maybank, CIMB Group, Petronas Chemicals, Sime Darby, Genting and Axiata all finished higher.

The lead from Wall Street remains positive as stocks gave back some ground in the latter part of the session after turning in a strong performance throughout much of the trading day on Friday. The markets pulled back well off their best levels of the day but still managed to end the day higher on some upbeat employment data.

The strength seen in morning trading came after a report from the Labor Department showed a bigger than expected increase in employment in March, with the continued job growth dragging the unemployment rate down to a two-year low. The report said non-farm payroll employment increased by 216,000 jobs in March following an upwardly revised increase of 194,000 jobs in February. Economists had expected employment to increase by about 200,000 jobs compared to the addition of 192,000 jobs originally reported for the previous month.

HAPPY TRADING

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