KUALA LUMPUR: Bursa Malaysia is likely to trend higher next week with the key index, FTSE Bursa Malaysia KLCI (FBM KLCI), set to test the new resistance level of 1,780 in line with the recovery in commodity prices and the spillover effects of improved economic data, said an analyst.
Affin Hwang Investment Bank Vice President and Head of Retail Research, Datuk Nazri Khan Adam Khan, said higher trade surplus recorded in June 2017 announced on Friday would provide a boost to the market, alongside Dow Jones Industrial Average breaching a record high of 22,000 on Thursday.
“We expect the market to continue the upward momentum next week. We have seen technology and gloves counters trading higher on Friday,” he told Bernama.
Malaysia’s export growth continued to outpace imports, with June 2017 trade at RM9.88 billion, marking the 236th consecutive month of trade surplus since November 1997 and the highest surplus since April 2016.
Trade surplus in June 2017 stood at RM9.88 billion while Malaysia’s total trade for the month increased by seven per cent to RM136.26 billion, up from RM127.38 billion recorded in June 2016.
Another dealer said market participants would also monitor the release of US non-farm payrolls on Friday to gauge market movement next week.
The market was in choppy throughout the week on lack of catalysts.
On a weekly basis, the benchmark FBM KLCI advanced 7.45 points to 1,774.53 from 1,767.08 last week.
The FBM Emas Index appreciated 28.24 points to 12,619.87, FBMT 100 Index rose 35.58 points to 12,268.19 and the FBM Emas Shariah Index was up 14.32 points to 12,744.01.
The FBM 70 fell 16.72 points to 14,956.75, and the FBM Ace eased 40.23 points to 6,576.41.
On a sectoral basis, the Plantation Index was 10.99 points higher at 7,850.78 and the Industrial Index declined 8.68 points to 3,265.33 and the Finance Index inched down 3.52 points to 16,822.86.
Total turnover was slightly lower at 7.31 billion units worth RM9.79 billion from 7.87 billion units worth RM9.03 billion last week.
Main Market volume was marginally higher at 5.10 billion shares valued at RM8.87 billion from 5.08 billion shares valued at RM8.45 billion last Friday.
Warrants volume jumped to 1.20 billion units valued at RM173.04 million from 580.48 million units valued at RM63.99 million previously.
The ACE Market turnover widened to 2.40 billion shares worth RM733.74 million from 2.17 billion shares worth RM506.05 million. –Bernama