Malaysian stocks likely to inch higher next week
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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, Datuk Dr 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 per cent, 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 Datuk Seri Najib Tun Razak’s statement that Malaysia gross domestic product would be higher than 4.2 per cent 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.
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.
Questions & Answers
Q.What is the expected target level for the benchmark index next week?
What is the expected target level for the benchmark index next week?
The benchmark index is anticipated to inch towards the 1,780-level next week. A convincing breach above 1,760 resistance would mean the FBM KLCI could aim for 1,780 and 1,800 levels.
Q.What factors are expected to support the rise in Malaysian stocks?
What factors are expected to support the rise in Malaysian stocks?
Positive local economic news and a return to calmness after the sharp drop on Wall Street are expected to support the market. The Prime Minister's statement on higher GDP also contributes to market sentiment.
Q.How has the FBM KLCI performed year-to-date?
How has the FBM KLCI performed year-to-date?
The FBM KLCI has recorded a total gain of 116 points, or 7.1 per cent, year-to-date. This signals resilience and potential for further upside despite external factors like US interest rate increases.
Q.Which market sector saw a decrease in performance this week?
Which market sector saw a decrease in performance this week?
The Plantation Index was weaker this week, decreasing by 4.94 points to close at 8,156.67. Other sectoral indices mentioned, like Finance and Industrial, saw increases.
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