KUALA LUMPUR, Feb 19 ― Heavy volume on Bursa Malaysia in the last three days showed that the market sentiment was positive as most of the trading went to the small caps, a dealer said.
“This shows that sentiment is positive because if the market is weak, the first to be affected is small caps,” RHB Research Institute Technical Analyst Mohammad Ashraf Abu Bakar told Bernama.
Volume on the Bursa Malaysia breached the two billion mark for three days in a row, with the highest recorded on Monday at a massive 3.67 billion shares changing hands.
Mohammad Ashraf said the high trading volume is expected to be sustained in the long run unless the Bursa Malaysia market deteriorated.
“With investors’ sentiment still bullish, trading volume could sustain unless the market deteriorated,” he said.
Meanwhile, another dealer said the high trading volume signalled real broad interest for stocks listed on Bursa Malaysia.
“The high volume is the clearest indication yet that Bursa Malaysia, fresh from its record-breaking feat in 2013, will soon be hitting the brakes,” he said.
He said the high volume also suggested that there was real liquidity and genuine interest in the local stock market as the trading was fuelled by local buyers, mitigating the exodus of foreign funds. ― Bernama
