BIMB Research sees buying sentiment on Bursa returning soon

Good news for the Kuala Lumpur Stock Exchange! Hopefully with the maintained status from Fitch, it will further improve the confidence of the investors! Happy Trading!

Extract from The Star Business News.

KUALA LUMPUR: BIMB Securities Research expects buying interest on Bursa Malaysia to return soon as Fitch maintained its status quo on Malaysia with a A- (negative) in its latest report.

“With this uncertainty lifted, we thus expect sentiments on Malaysia to improve with the 1,730 as the immediate resistance,” it said on Wednesday.

Foreign funds were net sellers on Tuesday at –RM173.4mil while retail investors were net sellers at –RM2.1mil while the selling was well absorbed by local funds. The FBM KLCI lost 5.90 points to close at 1,726.86 as foreign selling persisted.

Overnight on Wall Street, traders continued with their long on equities riding on the “feel good” sentiment following solid US home sales figures and that Greece is edging closer to a solution soon.

On the back of a relatively quiet trading session, the DJI Average rose 24.29 points at 18,144.07 with the Nasdaq closed on another record high at 5,160.10.

In Europe, shares climbed across the board on expectations that Greece debt impasse may be finally over. Asian markets were generally higher except for those in the SEA region as foreign selling remained apparent.