The Star Online: Business
The Star Online: Business |
- Share prices on Bursa Malaysia expected to extend gains this week
- Japanese shares will likely see more gains this week
- Malaysian rubber market expected to extend gains this week
| Share prices on Bursa Malaysia expected to extend gains this week Posted: 16 Sep 2012 06:30 PM PDT KUALA LUMPUR: SHARE prices on Bursa Malaysia is expected to extend gains following the bullish performance of global stocks, after the US' Federal Reserve outlined the third round of quantitative easing. The local index FTSE Bursa Malaysia KLCI (FBM KLCI) would stage further upside with the immediate target of 1,650 points, Affin Investment Bank vice president, head of retail research, Dr Nazri Khan told Bernama. The Fed's decision to keep monetary policy accommodative until mid-2015 and to buy an additional US$40bil in mortgage debt every month will keep borrowing costs low to stimulate the US and global growth higher. "The victory of eurozone-friendly party following the Dutch election and the German constitutional court's decision not to block the bloc's bailout fund are also adding to the better mood next week," he said. Meanwhile, risk appetite is back to support FBM KLCI to trend higher as both MSCI All World and S & P 500 rallied to six-month and four-year high, respectively, both the euro and gold hit five-month high while Italian and Spanish bond yield hit five-month low, Nazri said. On the home front, corporate developments are also fuelling market interest. It was reported that Malayan Banking Bhd has emerged as one of the potential buyers of a stake in Thailand's Bank Ayudhya Pcl while a Dialog-led consortium will invest in a new RM4bil LNG facility in Pengerang, Johor. Add to that, the latest announcement on seven high-impact Economic Transformation Programme projects worth RM5.6bil to support the local equity market in the near term.For the week just ended, the market was higher since last Thursday after suffering losses for the past few days. On Friday-to-Friday basis, the FBM KLCI finished up 18.40 points to 1,642.95 against 1,624.55 previous Friday. The weekly volume fell to 4.73 billion units valued at RM8.52bil from 6.63 billion shares worth RM8.52bil previous Friday. Bernama |
| Japanese shares will likely see more gains this week Posted: 16 Sep 2012 06:27 PM PDT TOKYO: JAPANESE shares will likely see more gains this week amid expectations that the Bank of Japan may follow suit after its US and European counterparts took action to bolster their economies. Last Friday, Tokyo stocks rose 1.83% after the US central bank announced a US$40bil a month asset buying programme focused on boosting jobs in the United States, where the unemployment rate sits at 8.1%. The move comes after the European Central Bank launched a new programme to buy unlimited amounts of heavily indebted countries' sovereign bonds in a bid to bring down their borrowing costs and prop up the battered euro. "The combined actions are giving the markets a much-needed sense of stability and should help keep share prices supported for at least the next several sessions, if not longer," said Hiroyuki Fukunaga, CEO of asset manager Investrust. Brokers said the decisions made by the European and US monetary authorities will likely pressure the Bank of Japan to implement its own stimulus steps when it meets September 18-19. The Tokyo market is also paying attention to the re-listing of Japan Airlines (JAL), scheduled for Wednesday on the Tokyo Stock Exchange. JAL, which exited bankruptcy last year, has said its offering will raise 663bil (US$8.5bil) by selling 175 million shares at 3,790 each in the world's second-biggest share sale this year after Facebook. In the week to September 14, the benchmark Nikkei 225 Index at the Tokyo Stock Exchange rose 3.24%, or 287.74 points, to 9,159.39. The broader Topix Index of all first-section issues gained 2.95%, or 21.71 points, to 756.88. Tokyo financial markets will be closed today(Monday) for a national holiday. AFP |
| Malaysian rubber market expected to extend gains this week Posted: 16 Sep 2012 06:24 PM PDT KUALA LUMPUR: The Malaysian rubber market is expected to extend its gains this week following positive response to news report that the Federal Reserve's fresh phase of monetary stimulus will support economic growth and boost demand. Physical rubber prices is also likely to be influenced by the Tokyo Commodity Exchange and Shanghai Futures Exchange. The market would be closed today due to Malaysia Day public holiday and will resume trading tomorrow. On a Friday-to-Friday basis, the Malaysian Rubber Board's sellers official physical price for tyre-grade SMR 20 increased 52.5 sen to 842 sen per kg while latex-in-bulk rose 29.5 sen to 593 sen per kg. The unofficial sellers' closing price for tyre-grade SMR 20 soared 60 sen to 851 sen per kg and latex-in-bulk edged up 36 sen to 599 sen per kg. Bernama |
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