Bursa may remain weak on lack of buying momentum

SHARE prices on Bursa Malaysia are likely to remain weak this week due to lack of buying momentum.

Trading volume, however, is expected to improve as investors start to return after an extended Chinese New Year holiday break.

Since the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) reached its all-time high of 1,699.68 on January 4, the benchmark index has been dealt with a downward correction.

Immediate support is expected to remain at 1,600 and 1,610 points, while immediate resistance for rally hurdles should stand at 1,640 and 1,650 points.

It is learnt that many investors are temporarily staying away from the market action and remaining on the sidelines due to uncertainties rising from the upcoming 13th general election.

However, despite all this, with the corporate earnings season set to move into full swing this week, the local index could trend higher.

Technically, the FBM KLCI could form a bullish inverted "head and shoulders" pattern with two legs already tested the 1,600- point level.

On global development, Japan's reaffirmed commitment to a massive liquidity programme, a 100 trillion yen asset purchase programme, and retaining interest rates unchanged would be the biggest catalyst to support market sentiment.

Other factors that may support the local market is the outcome of the Group of Twenty (G20) Finance Ministers and Central Bank Governors meeting in Moscow.

For the week-just ended, the FMB KLCI traded mostly range-bound due to lack of follow-through buying after a promising start on Wednesday.

On a week-to-week basis, the local benchmark was up 4.13 points to 1,627.93 from 1,623.8 in the previous Friday. Weekly turnover declined to 2.18 billion units worth RM3.73 billion from 4.902 billion units worth RM8.048 billion previously.

The Main Market volume fell to 1.82 billion shares valued at RM3.68 billion from 3.938 billion shares valued at RM7.937 billion previously.

The ACE Market volume decreased to 320.62 million shares worth RM34.53 million from 794.924 million units worth RM104.286 million.