FBM KLCI LIKELY TO BE BEARISH NEXT WEEK

16 Jul 2013 07:53

KUALA LUMPUR, July 13 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contracts on Bursa Malaysia Derivatives are likely to be bearish next week ahead of the release of China's growth data on Monday, analysts said.

An analyst said investors expected the market to fall amid concern the data may signal a sharp decline in gross domestic product (GDP) growth in the second quarter.

"Most economists expect China's GDP to be below expectation," he said.

Economists believed growth over the second half would be a little weaker than the 7.7 per cent year-on-year recorded in the first quarter.

For the week just-ended, the FBM KLCI futures market tracked regional equities markets, which were influenced by economic development in the US and China.

On a Friday-to-Friday basis, the FBM KLCI rose 13.38 points to 1,785.65 compared with last Friday's close of 1,772.27. Spot month July 2013, August 2013 and September 2013 rose 14.5 points each to 1,789.5, 1,790 and 1,788 respectively, while December 2013 increased 16 points to 1,791.

Turnover declined to 26,939 from 28,572 lots last week, while open interest increased to 38,813 contracts from 37,212 contracts previously. -- BERNAMA MI THs