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Saturday, June 18, 2011

KL bourse set to rebound next week (BT)

Share prices on Bursa Malaysia are likely to rebound next week on mild bargain hunting in the emerging markets amid rising concerns over slower global economic growth.

Affin Investment Bank head of retail research, Dr Nazri Khan, said despite the low-volume-soft-session last week, the bank, however, saw signs of cautious buying next week due to the slowdown in the US economic recovery.

"We expect oversold bounce to continue next week back to a higher range of 1,560-1,570 level given the temporary bargain hunting in the emerging markets following the battering of stocks in the majority of the developed world," he told Bernama today.

He said as long as the soft patch did not evolve into panic selling, the bank would maintain its core view that any dip was a buying opportunity as recovery was steady but slow.

"The fact that Dow Jones closed below 12,000 for the seventh week free-fall (the longest slide since September 30, 2002) may suggest a short term undervalued market following a serious oversold situation although we agree that we don't see any selling climax yet to suggest a real medium term bottom," he

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