Malaysian shares are expected to trade up in this week as investors continue to purchase beaten down lower liners and concerns ease over excessive speculation, dealers said. "As the buying interest is still apparent, the market's recovery looks to sustain into this week with the 900 points level a realistic target ahead of the mid-year closing," said Victor Wan, a senior analyst at Mercury Securities.
Wan said bouts of profit taking will also be a feature as retail investors start to lock in their short-term gains on lower liners.
The market staged a recovery during the week after Prime Minister Abdullah Ahmad Badawi ordered the Securities Commission to probe a recent market selldown.
Banks also reassured investors they would continue share margin financing, putting to rest rumours the facilities would be limited.
Wan said there could be some choppiness in store as the week progresses, especially if the key index approaches the 900 points level.
"Still, we expect the market to hold up well as heavyweights will likely provide vital support again ahead of the half-year closing," he said.
For the week ending June 10, the Kuala Lumpur Composite Index gained 24.14 points or 2.78 percent at 890.02.
Average daily volume was 644 million shares worth 671.38 million ringgit (176.6 million dollars), up from 452.5 million shares valued at 582.12 million ringgit in the previous week.
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