Bursa Malaysia is likely to trend higher next week, with the benchmark index inching towards the 1,780-level, supported by positive local economic news and the return of calmness after the sharp drop on Wall Street early last week.
Affin Hwang Investment Bank Vice-President and Head of Retail Research, Nazri Khan Adam Khan, said FTSE Bursa Malaysia KLCI (FBM KLCI) maintained its bullishness and stayed in higher territory as equity bulls remained largely unfazed by the increases in the US interest rate.
“For the year-to-date, FBM KLCI recorded a total gain of 116 points, or 7.1%, signalling more resilience and upside in the near term despite imminent Federal Reserve rate increases and doubts on US President Donald Trump’s fiscal reforms,” he told Bernama.
On the local news, he said, Prime Minister Najib Razak’s statement that Malaysia gross domestic product would be higher than 4.2% this year should be supportive for market sentiment.
Nazri said this showed that the economy was growing more than double the rates the International Monetary Fund had predicted for advanced economies while showing that Malaysia was firmly on the path to become a high-income nation.
On the technical front, he said, immediate uptrend supports for the index were at 1,700 and 1,730.
However, a convincing breach above 1,760 resistance would mean that the FBM KLCI would aim for the 1,780 and 1,800 levels.
On a week-to-week basis, the FBM KLCI increased 0.55 of-a-point to 1,745.75 from 1,745.20 last Friday.
The FBM Emas Index rose 24.52 points to 12,365.86, FBMT 100 Index was up 20.7 points to 12,017.00 and the FBM Emas Syariah Index gained 45.52 points to 12,772.75.
On a sectoral basis, the Finance Index added 8.08 points to 15,748.07 and the Industrial Index rose 8.43 points to 3,272.24.
The Plantation Index was 4.94 points weaker at 8,156.67.
Weekly turnover surged to 22.23 billion units worth RM15.24 billion from 19.39 billion units worth RM17.22 billion last week.
Main Market volume narrowed to 14.74 billion shares valued at RM15.16 billion from 15.10 billion shares valued at RM16.53 billion previously.
Warrant turnover rose to 1.23 billion units worth RM149.62 million from 1.22 billion units worth RM148.94 million last week.
The ACE Market increased to 5.98 billion shares worth RM897.82 million from 3.0 billion shares worth RM523.39 million previously. –Bernama