KUALA LUMPUR: Bursa Malaysia is expected to see an upswing during the final week of the year as fund managers are back from long holidays to carry on with portfolio balancing.
Analysts said fund managers will be looking to dish out more money in the market as they continue with their window dressing activities, which will help lift the local stock market.
Media Prima Bhd, Tenaga Nasional Bhd, Sime Darby Bhd, Axiata Group Bhd and Serba Dinamik Holdings Bhd are among stocks that had attracted large fund managers like Morgan Stanley, Employees Provident Fund, Permodalan Nasional Bhd and Retirement Fund Inc (KWAP) in recent weeks.
The changes in shareholdings of these stocks were also active on Bursa Malaysia yesterday as these fund managers look to improve their portfolio performance.
Panel of Malaysian Association of Technical Analysts Nazarry Rosli said the stock market is expected to be better with fund managers back to look for new opportunities and implement a new portfolio balancing.
FTSE Bursa Malaysia KLCI closed marginally lower at 1,759.99 today, down from 1760.24 on Friday.
Affin Hwang Investment Bank Bhd senior director and head of equity capital markets Arvin Chia, meanwhile, said although there was no massive window-dressing towards the end of the year in the past few years, te benchmark FBM KLCI always has the possibility of ending its trading on high-note due to window-dressing.
Bursa Malaysia is expected to resume its trading excitement through to the first-quarter of next year, he added.
Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said there is always a possibility for FBM KLCI to stage a last minute rebound, given its index is still deemed to be at an oversold position.
“The recent tax reform bill in the US indicates that the global growth next year should be well supported despite Federal Reserve is anticipated to remove the policy accommodation gradually.
“We also opined that the ringgit is very much undervalued, which would provide the motivation for foreign funds to come in to our stock markets,” he said.
The FBM KLCI index lost 0.25 points or 0.01 per cent to 1,759.99 yesterday, after three days of gain since last Wednesday.