FBM KLCI uncertain next week, can rebound on better oil prices

KUALA LUMPUR: The trend for the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) is uncertain for next week but chances of rebounding will be heightened if global oil prices recover and following Japan's stimulus package.
Affin Hwang Investment Bank Vice-President/Head of Retail Research Datuk Dr Nazri Khan Adam Khan said Japanese Prime Minister Shinzo Abe's announcement of a 28 trillion yen stimulus package would spur demand in regional bourses.
"The package would flood liquidity into the system which will end up with emerging markets, including Malaysia," he told Bernama.
Nazri was optimistic that global oil prices, which had fallen to a three month low-level, would rebound next week on the anticipation of supply control measures by the Organisation of the Petroleum Exporting Countries.
He said immediate support would be noted at the 1,650 points level while key resistance should be at the 1,680-points level.
For the week-just-ended, demand in the local bourse was mostly influenced by trading in bluechips, depreciation of the ringgit and external news, including key policy meetings by the US Federal Reserve and Bank of Japan.
On a Friday-to-Friday basis, the FBM KLCI eased 4.16 points to 1,653.26 from 1,657.42 recorded the previous week.
The FBM Emas Index fell 26.06 points to 11,585.11, the FBMT 100 Index lost 23.44 points to 11,283.78 and the FBM Emas Syariah Index declined 17.59 points to 12,198.77.
On a sectoral basis, the Finance Index surged 84.81 points to 14,186.45 but the Industrial Index gave up 37.93 points to 3,095.15 and the Plantation Index trimmed 12.26 points to 7,562.24.
Weekly turnover increased to 8.88 billion units, worth RM8.72 billion, from 8.71 billion units, valued at RM8.41 billion, last week.
Main market volume rose to 6.42 billion shares, worth RM8.29 billion, from 5.80 billion shares, valued at RM7.89 billion, previously.
Warrant turnover shrank to 852.88 million units, worth RM151.47 million, from 1.14 billion units, valued at RM166.39 million, last week.
The ACE market reduced to 1.59 billion shares, worth RM271.98 million, from 1.75 billion shares, valued at RM344.53 million, previously.
Gold futures contract on Bursa Malaysia Derivatives is expected to trend higher next week, as traders will bank on economic data slated to be announced next week, dealers said.
Phillip Futures Sdn Bhd Dealer Leo Goh Boon Hao said the week ahead, traders would continue to focus on China's Purchasing Managers Index (PMI), US job report and also monitor currencies (ringgit and US dollar) movements.
"We expect the Bursa gold futures to drift higher for the coming week, on geopolitical risk and weak US Gross Domestic Product data," he told Bernama.
On a Friday-to-Friday basis, July 2016 rose 33 ticks to RM174.60 a gramme, August 2016 improved 31 ticks to RM174.80 a gramme while September 2016 and October 2016 each gained 28 ticks to RM175.30 and RM175.45 a gramme, respectively.
Weekly turnover eased to 96 lots, worth RM1.52 million, from 127 lots worth RM2.19 million last week.
Open interest on Friday decreased to 286 contracts from 331 contracts previously. — Bernama