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Saturday, June 11, 2011

KL bourse to see mild rally next week (BT)

Share prices on Bursa Malaysia are expected to experience a mild rally next week level with investors bound to grab the cheaper stocks after recent losses, said Affin Investment Bank head of retail research, Dr Nazri Khan.

The market could continue the April 2011 rally where the composite index reached the 1,565 level.

Dr Nazri said that despite the thinner volume and sideways movement, the interesting point was that the FBMKLCI did not fall as much as expected given the financial woes on Wall Street and Europe.

Meanwhile, another driver for Bursa Malaysia as well for other regional markets movements, would be the signal on whether the US central bank would begin printing more money in a third round of quantitative easing to outweigh the burgeoning European debt worries.

Dr Nazri also explained that the Kuala Lumpur bourse which was looking more attractive with the commencement of the Economic Transformation Programme projects, and higher commodities prices may attract investors and be a catalyst for local equities especially the oil and gas related stocks.

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