KUALA LUMPUR: Bursa Malaysia is expected to stage a further rebound next week, lifted by strong Wall Street performance, Federal Reserve’s dovish statement, steady ringgit and recovering oil price.
Affin Hwang Investment Bank Vice-President/Head of Retail Research Datuk Nazri Khan Adam Khan said the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) was expected to move above the 1,767 support level next week, failing which, the sell-off from last week might continue.
“Global stocks have touched record highs amid renewed optimism that the Federal Reserve would maintain a gradual path of policy normalisation, while the ringgit steadied above the crucial 4.300 level,” he told Bernama.
Nazri said oil prices also rose for a fourth successive session, with Brent attempting to establish a foothold near US$50 (RM214.05) a barrel level and at the same time, the ringgit hovered around a one-month high against the greenback following the Bank Negara Malaysia’s (BNM) decision not to raise interest rates.
He said there were three positive news for the local bourse, namely moderating inflation, stronger Industrial Production Index and accommodative BNM’s overnight policy rates.
BNM sees increasing upside to the domestic economy, particularly as global growth appears to be more synchronous, driven by higher industrial activity and global trade, said Nazri.
On a Friday-to-Friday basis, the FBM KLCI lost 4.93 points to 1,755, mostly influenced by Wall Street’s performance, as well as rampant profit-taking activities.
The FBM Emas Index gave up 56.09 points for 12,494.68, FBMT 100 Index erased 45.88 points to 12,142.19 and the FBM Emas Shariah Index was down 91.51 points to 12,674.74.
The FBM 70 declined 100.58 points to 14,837.25, but the FBM Ace jumped 300.87 points to 6,829.17.
On a sectoral basis, the Finance Index dropped 90.94 points to 16,671.65, the Plantation Index declined 17.67 points to 7,854.32, but the Industrial Index increased 21.48 points to 3,264.77
The week saw total turnover expanded to 9.29 billion units worth RM9.29 billion from eight billion units worth RM8.52 billion last week.
The Main Market volume was up to 5.62 billion shares valued at RM8.55 billion from 5.51 billion shares valued at RM7.99 billion the previous week.
Warrants volume increased to 690.32 million units worth RM72.88 million from last week’s 687.91 million units worth RM95.23 million.
The ACE Market turnover widened to 2.84 billion shares valued at RM632.99 million from 1.7 billion shares valued at RM407.48 million previously. –Bernama