KL shares likely to rebound next week

KUALA LUMPUR: Bursa Malaysia's key benchmark index, FTSE Bursa Malaysia KLCI (FBM KLCI), is likely to rebound next week, driven by Bank Negara Malaysia's (BNM) accommodative policy decision and bullish external outlook.

Head of retail research at Affin Hwang Investment Bank, Datuk Dr Nazri Khan, said despite the false starts last week, the FBM KLCI should find support at 1,800 and trend higher, tracking upswings on Wall Street and Europe as well as Asian regional indices.

"On the domestic front, Bursa Malaysia lagged the regional market but the Malaysian economic policy picture should attract more foreign funds inflow.

"This is true following BNM's decision to leave the Overnight Policy Rate unchanged at 3.25% for the fifth time," he told Bernama.

Nazri said despite heavy profit-taking near its 200-day moving average, the short-term uptrend, however, remained intact with the FBM KLCI still holding above the 20- and 50-day moving average near 1,800 support level.

"The next areas of resistance are pegged at 1,830 and 1,850 while support should come at 1,780 and 1,760 levels.

"Chart-wise, the FBM KLCI has formed a bullish daily 'Doji Star' candlestick, which indicates a mild reversal at 1,800 support level," he said.

For the week just-ended, the FBM KLCI fell 14.25 points to 1,806.96 from 1,821.21 last Friday, FBM Emas Index dipped 116.42 points to 12,440.96, FBMT100 Index weakened 113.61 points to 12,120.34 and the FBM Emas Shariah Index was 85.65 points lower at 13,034.98.

The FBM 70 dropped 195.28 points to 13,410.99. The FBM Ace improved 64.19 points to 6,698.93.

The Industrial Index slipped 9.43 points to 3,313.08 and the Finance Index earned 0.69 of a point to 15,989.77.

The Plantation Index trimmed 85.88 points to 7,923.79.

Weekly turnover increased to 11.34 billion units worth RM11 billion from 10.45 billion units worth RM10.62 billion last week.

Main market volume rose to 6.29 billion shares valued at RM10.15 billion from 5.91 billion shares valued at RM9.80 billion previously.

Warrant turnover expanded to 503.53 million units worth RM92.35 million from 402.92 million units worth RM75.57 million last week.

The ACE market volume increased to 4.54 billion shares valued at RM761.57 million from 4.11 billion shares valued at RM736.36 million last week. – Bernama