BURSA Malaysia shares are expected to rebound and trade higher this week in reaction to 2015 Budget.
There should be an across-the-board technical rebound on Bursa as a result of the oversold situation last Friday, following the Asian markets’ selldown.
Investors are expected to nibble on selected heavyweights, blue chips and small caps to keep the benchmark FTSE Bursa Malaysia KLCI trending marginally higher over the trading week.
Nevertheless, indicators show that the index is still in a consolidation mode, as it continues to trend below major moving averages.
Technically speaking, the key index should be well-supported above the 1,800-point level. In the event the key index falls below this, buying support should trigger to give the index a lift.
An analyst said the FBM KLCI will trade range-bound between 1,800 and 1,830 points, while rotational play on small-cap and low liners is expected to continue.
“Shares are expected to trade marginally higher with players adopting a cautious strategy for the week ahead and closely tracking the performance of foreign bourses. Blue chips such as BAT, Carlsberg, Public Bank and UMW, which had succumbed to profit-taking activities last Friday, are expected to rebound this week.”
The analyst added that rotational play on second and third liner stocks will continue, but on a decreasing momentum.
A dealer noted that situational stocks, such as CIMB Group Holdings Bhd, RHB Capital Bhd and Malaysian Building Society Bhd — which are involved in the mega bank merger — may be actively-traded this week.