Malaysian share prices are expected to continue firmer in the coming week on a continuing recovery from oversold levels, dealers said Friday. They said that with the US Federal Reserve decision on interest rates out of the way and a hint that it will go softer on interest rates in the future, investors should be feeling more positive.
For the week ending June 30, the Kuala Lumpur Stock Exchange composite index closed 8.35 points or 0.92 percent higher at 914.69.
Average daily volume was 810.70 million shares worth 807 million ringgit (224 million dollars) compared to 496.40 million shares worth 699.56 million ringgit in the previous week.
"The technical rebound had developed into a more solid recovery process spurred by the relief rally after the US Fed was seen to be relaxing its stance on credit tightening," said Victor Wan, senior analyst with Mercury Securities.
Wan said that with US rate hike concerns out of the way, the local bourse was expected to continue its recovery.
"In the short-term, the market is expected to benefit from the continuing rebound," he said.