Investors will continue to focus on plantation stocks: Dealer

KUALA LUMPUR: Share prices on Bursa Malaysia are expected to be range-bound this week as investors are still worried about rising inflation in the country following fuel price increases, dealers said.

They, however, added that bargain hunting by local funds and long-term investors would lend some support to the market.

“Inflation fears will continue to affect the market as investors believe the increase in fuel prices would dampen the business environment in the country,” a dealer said.

Another dealer said investors would continue to focus on plantation stocks on the back of a high demand for edible oil.

He said the performance of the local market would track Wall Street’s.

Amid the uncertainties in the market, the Kuala Lumpur Composite Index is expected to move between 1,200 and 1,280 points.

In the week just ended, the local bourse started on an easier note as investors were cautious following uncertainties in the global and domestic market. The market was sharply lower on Thursday following the government’s decision to increase fuel prices.

However, the market rebounded on Friday on bargain hunting in blue-chips and gains on Tenaga Nasional.

Prime Minister Datuk Seri Abdullah Ahmad Badawi on Wednesday announced the increases in petrol and diesel prices by 78 sen and RM1 to RM2.70 and RM2.58 per litre respectively.

On a Friday-to-Friday basis, the KLCI fell 27.53 points to 1,248.57 from 1,276.10 previously.

The Industrial Index declined 85.96 points to 2,604.61, the Finance Index dropped 330.78 points to 9,461.85 and the Plantation Index was 237.97 points lower at 7,758.39.

In the Financial Times Stock Exchange-Bursa Malaysia (FTSE-BM) Index series, FBMEmas fell 138.02 points to 8,348.14, FBM30 lost 63.81 points to 8,105.55, FBM2BRD dropped 101.52 points to 5,658.85 and FBM-MDQ was down 172.43 points to 4,642.33.

Total turnover for the week increased to 2.577 billion shares valued at RM7.291 billion from 2.569 billion shares worth RM6.717 billion previous week.

The Main Board volume rose to 2.180 billion shares valued at RM7.176 billion from 2.158 billion shares worth RM6.581 billion previously. Volume on the Second Board rose to 125.097 million units valued at RM70.812 million from 122.466 million units worth RM86.725 million previous week.

On the Mesdaq market, volume climbed to 137.281 million shares valued at RM36.072 million against 128.300 million shares worth RM39.640 million previously.

Volume on call warrants declined to 135.214 million units valued at RM7.954 million from 159.974 million units worth RM8.877 million previous week.

Direct business deals eased to 179.427 million shares valued at RM213.869 million from 187.726 million shares worth RM229.758 million previously.

—Bernama