Malaysian shares expected to be choppy

19 Mar, 2007

Malaysian share prices are expected to be choppy next week as anxiety remains over the uncertainties in the outlook of the regional markets, analysts said Friday.
"With risk appetite under pressure due to the sharp swings in prices, the market has turned uncertain with huge jumps and declines intra-day," said Danny Oh, a senior analyst from Mercury Securities. Oh said recent "mood swings" and volatility signified "massive uncertainties and anxiety" in the market.
"Hence trading is expected to be choppy and traders are advised to stay cautious as the market has yet to settle down," Oh said. He said although concern over the US economy had dissipated, the undertone of the Malaysian bourse remained cautious. Oh said volatile price movements may present some intra-day trading opportunities. For the week ending March 16, the Kuala Lumpur stock exchange composite index lost 6.63 points or 0.55 percent to 1,182.20.
Average daily volume for the week slowed further to 1.3 billion shares worth 1.8 billion ringgit (513.96 million dollars), down from 2.3 billion shares worth 2.75 billion ringgit last week.

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