This bear market rally will continue.

Byline: Kaladher Govindan

SHARE prices on Bursa Malaysia rose last week, with most of the week's gains captured on Friday on hopes federal funds will flow again to boost economic growth in Perak following the takeover of the state government by the Barisan Nasional (BN) from Pakatan Rakyat. Gains were led by banks BCHB, Maybank and Public Bank, with core plantation stocks KL Kepong and Sime Darby lending a hand as crude palm oil prices climbed above the RM1,800 per tonne level.

Bursa Malaysia's exceptional performance last Friday was a total contrast to the performance of regional markets and Wall Street. The takeover of Perak by the BN could have instilled some confidence that it would pave the way for fast implementation of public projects in the state as it is a known fact that public spending has taken a back seat after March last year.

Nevertheless, the 12-point surge in the benchmark Kuala Lumpur Composite Index (KLCI) for the week was not backed by strong volume and suggests that …