KUALA LUMPUR (Dec 22): The FBM KLCI could be subdued next week after being sold down last Friday in tandem with most global markets on the US "fiscal cliff" worries.
With a holiday-shortened week in conjunction with the Christmas holiday on Tuesday, most investors would likely remain on the sidelines and wait for fresh leads in the New Year, leaving the local index range-bound during final week of 2012.
US stocks finished lower on Friday after a Republican plan to avoid the "fiscal cliff" failed to gain sufficient support on Thursday night, draining hopes that a deal would be reached before 2013, according to Reuters.
The White House on Friday tried to rescue stalled talks on a fiscal crisis after a Republican plan imploded in Congress, but there was little headway as lawmakers and President Barack Obama abandoned Washington for Christmas.
However, Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said he believes the local equity market will zoom higher from a number of positively received events with the global equities holding onto strong December gains despite being overbought.
"Given ample liquidity and rising foreign net equity flow, we are not surprised to see FBMKLCI aiming higher for 1,680 level. Any close above 1,680 will lead FBMKLCI to a good bull rally towards an-all-time-high of 1720-1750 in the early part of next year," he said.
Among the stocks that could be in focus next week are Tan Sri Syed Mokhtar Albukhary-owned Tradewinds (M) Bhd, Tradewinds Plantation Bhd and Padiberas Nasional Bhd (Bernas); TH Heavy Engineering Bhd; and Sanichi Technology Bhd.
Trading the securities of Syed Mokhtar's three companies were halted late on Friday after each said trading was being suspended pending an announcement, in three separate announcements by the respective companies on Bursa Malaysia.
However, the companies have yet to make any further announcements, which would likely be on Monday.
On Friday, theedgemealaysia.com reported that market observers said Tradewinds might probably privatise both Tradewinds Plantation and Bernas, and streamline all its commodity-based businesses under one listed company.
Trading in TH Heavy Engineering resumes on Monday after the company inked a Memorandum of Understanding (MoU) with McDermott International Inc, to provide a broad spectrum of marine construction services in the Malaysian and Asia Pacific offshore oil and gas industry.
The joint venture is aimed to provide both companies a broad spectrum of marine construction services, including full engineering, procurement, construction, installation and commissioning (EPCIC) solutions.
The stock was last traded at 57 sen.
Following an unusual market activity (UMA) query by Bursa Securities, Sanichi said it was unaware of the cause of the sharp rise in the price and high volume of the shares.
In reply to the UMA query on Friday, Sanichi said after due inquiry with its directors and major shareholders, it was unaware of its cause, adding there was no corporate development relating to its business and affairs that had not been previously announced which could have accounted for it, including those at the stage of negotiations or discussions.
It was also unaware of any other possible explanation to account for the UMA, with the exception the implementation of the company's restructuring exercise.