Bursa KLCI for the week 07 Nov 2009
"Fund managers are still on the sidelines, and I don't see them making a move anytime soon," a dealer said.
"Market participants need some strong incentives to move in as the benchmark index had already reached its peak of 1,288.42 on Nov 17. And at this time, I don't see any push factors," he added.
He said consolidation was necessary for the market to settle on a firm ground before surging to the next level.
The FTSE Bursa Malaysia (FBM) Kuala Lumpur Composite Index (KLCI) is expected to breach the 1,300-point level before year-end while the market awaits for the country's new economic model to be unveiled in the near future.
Analysts put next week's support areas between 1,250.0 and 1,267.0 and resistance at the 1,269.0 and 1,286.0 levels.
Another dealer said most investors were cautious and reluctant to commit in the market due to uncertainties following Dubai World's financial woes.
"With the Middle-Eastern debacle that emanated from Dubai, local investors will flee from stocks that have exposure to that country, keep more cash for the potential crash," he said.
The financial worries in Dubai and also the Vietnamese Dong devaluation last month caused world and regional markets to correct downwards.
"Any movement in the world and regional bourses would give an impact on the local market as well," the dealer said.
This week, the local bourse moved in a tight range as profit taking and liquidation activities kept prices narrowly mixed.
On a weekly basis, the FBM KLCI was down by 0.41 of a point to 1,270.20 from 1,270.61.