Malaysian shares are expected to stage a rebound next week after the government announces plans to carry out infrastructure projects to boost the construction sector, analysts said Friday.
"The Ninth Malaysian Plan did not disappoint as there are renewed government spending on selected infrastructure projects to aid the construction industry," Victor Wan, a senior analyst at Mercury Securities said. "As the above plan is digested, the bourse could also stage a rebound and retest the 931-934 levels again," he added.
Among the major undertakings are the second bridge and a monorail in the northern Penang state, expansion of the Kuala Lumpur International Airport and an improved rail network.
"The plans correspond to the government's target of a 6 percent annual economic growth for the next five years, which is achievable if the above plans are implemented without delay," he said.
Prime Minister Abdullah Ahmad Badawi announced Friday the government would allocate 200 billion ringgit for development for the five year plan from 2006.
For the week ending March 31, the Kuala Lumpur Stock Exchange composite index gained 0.54 points or 0.1 percent to 926.63.
Average daily volume was 377.14 million shares worth 1.09 billion ringgit (295 million dollars) compared to 786.54 million shares worth 890.76 million ringgit in the previous week. At the close, the ringgit was traded at 3.6905 to the dollar.
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