KL Mart Seen Rallying To 1,050-Points Level

Published: 2009/04/24

MALAYSIA'S stock index is set to rally to the 1,050-point level, the highest in seven months, after the gauge broke through the 980 “technical barricade,” RHB Research Institute Sdn Bhd said.“Traders have clearly ignored the recent technical patterns, which have constantly suggested a negative turnaround in the index’s direction,” RHB said in a report today.

“Market sentiment seems to suggest follow-through buying momentum despite the greatly overbought short-term momentum readings.”The Kuala Lumpur Composite Index rose 0.8 per cent to 986.54 as of 10:15 am local time, set for the highest level since October 7.

It has gained 2.2 per cent this week, the sixth week of gains, set to cap the longest weekly winning streak since May 4, 2007. It has exceeded its average level for the past 200 days, a sign many analysts take to indicate the gauge is targeting to surpass the 1,000 point level.

Stocks were buoyed by regional market gains and Prime Minister Datuk Seri Najib Razak’s effort this week to open up the country’s services industry to foreigners. Maybank Investment Bank Bhd said yesterday the government may say next week it will issue more licences to foreign banks and announce plans to open up the Islamic finance industry as part of a liberalisation of financial services.