Portfolio Performance @ 11 Feb 2011

The portfolio performance for the week ended 11 Feb 2011:

KLSE outlook next probably can referred to what was published on http://www.btimes.com/ on 12 Feb 2011  below:

Title : KL bourse set to consolidate further

The local bourse is expected to consolidate further next week with the FTSE Bursa Malaysia KLCI (FBM KLCI) moving within 1,480 and 1,500.

Affin Investment Bank's head of retail research, Dr Nazri Khan, said this would be in line with a weaker regional sentiment in anticipation of fiscal tightening in Asian markets following China's rate hike.

He said there were signs that fund managers would be using the excuse to take profits after the Chinese New Year season following the 19 per cent stellar gain made by FBM KLCI last year.

"Despite the anticipated regional interest rate hike and volatile capital flow, we believe any correction is healthy as there are positive indicators to sustain the local market," he said.
Any concern on capital flow reversal would be misplaced, he said, as the outflow would only reflect temporary portfolio reallocation following higher speed of inflation in Asia as compared to the US and Europe.

Dr Nazri listed five factors that would support the market. Two of which were the ringgit's strong performance to a 13-year high and the steady price of crude palm oil to almost a three-year high.

Besides that, he said, the Egypt crisis remained isolated.

The other factors were the solid decline in global oil prices and the strong market recovery in the US and Europe to sustain risk appetite higher.

"We also believe that the current local market dividend yield of 3.5 per cent should remain attractive as it is currently above the regional average," he said.

Overall, according to Dr Nazri, the plantation sector would be the favourite.

This week, the market made a positive start on Monday after the Chinese New Year holiday, led by gains in plantation-related counters amid strong crude palm oil prices.

However, it retreated into negative territory on Wednesday with losses in bluechips as sentiment turned cautious amid news of China's latest rate hike.

On Thursday, FBM KLCI lost 30.08 points to 1,503.99, its lowest level since Dec 21 last year in line with declines in regional Asian markets.

On Friday, FBM KLCI retreated below the psychological 1,500 level as sentiment remained cautious amid prevailing weaknesses in regional markets due to rising tension in Egypt.

On a weekly basis, FBM KLCI declined 37.3 points to 1,494.52 from 1,531.82.

The Emas Index decreased 217.51 to 10,352.81 from 10,570.32 and the FBM70 Index slipped 152.29 points to 11,202.67 from 11,354.96, but the FBM Ace Index gained 91.87 points to 4,506.16 from 4,414.29.

The Finance Index lost 452.03 points to 13,519.11 from 13,971.14, the industrial Index declined 44.41 points to 2,835.89 from 2,880.3 and the Plantation Index declined 148.01 points to 7,809.49 from 7,957.5.

The total weekly volume increased to 12.51 billiion shares worth RM13.55 billion from the 2.95 billion shares valued at RM3.78 billion recorded during the holiday-shortened week last week.

The Main Market turnover increased to 9.99 billion shares valued at RM13.08 billion from 2.60 billion shares worth RM3.72 billion.

Turnover on the ACE Market increased to 1.582 billion shares worth RM235.71 million from 151.33 million shares worth RM19.11 million.

Warrants increased to 845.51 million units worth RM213.92 million from 185.85 million units worth RM44.90 million. -- Bernama