Bursa Malaysia likely to be firm next week

KUALA LUMPUR: Trading on Bursa Malaysia is likely to be firm next week and the FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to move around 1,770-level, backed by both external and domestic factors, namely gains in global bourses as well as the coming Budget 2018.
Affin Hwang Investment Bank Vice-President/Head of Retail Research, Datuk Dr Nazri Khan Adam Khan, said strong Wall Street, Nasdaq and S&P 500 performances, coupled with European Central Bank's and Bank of Japan's decisions to maintain their current policies, had actually calmed the market.
"For next week, we will see focus on technology and construction stocks as they are predicted to gain the most from the coming Budget 2018. We see the budget will be the crucial play in the market," he told Bernama.
Nazri said the stable ringgit and the higher benchmark Brent Crude oil would also be good for the market. The ringgit ended higher against the US dollar on Friday at 4.2820/2850 compared with Thursday's close of 4.2900/2930, while the global benchmark was now traded above US$50 (US$1 = RM4.28) per barrel.
On a Friday-to-Friday basis, the FBM KLCI was lower at the beginning of the week due to lack of fresh catalysts.
However, it gained 4.16 points to 1,759.16 on the last trading day, taking the cue from the positive global market.
The FBM Emas Index added 45.33 points for 12,540.01, FBMT 100 Index rose 37.7 points to 12,1179.89 and the FBM Emas Syariah Index was up 45.15 points to 12,719.89.
The FBM 70 jumped 78.64 points to 14,915.89, but the FBM Ace lost 73.69 points to 6,775.48.
On a sectoral basis, the Plantation Index was 17.03 points better at 7,871.35 and the Industrial Index rose by 10.37 points to 3,275.14.
The Finance Index, however, dropped 0.51 of-a-point to 16,671.14.
Total turnover rose to 9.96 billion units worth RM10.01 billion from 9.29 billion units worth RM9.29 billion last week.
The Main Market volume increased to 6.49 billion shares valued at RM9.26 billion from 5.62 billion shares valued at RM8.55 billion last Friday.
Warrants volume increased to 742.7 million units worth RM69.76 million from 690.32 million units worth RM72.88 million last week.
The ACE Market turnover narrowed to 2.68 billion shares valued at RM668.58 million from 2.84 billion shares valued at RM632.99 million previously.
Gold futures contracts on Bursa Malaysia Derivatives are likely to trade higher next week, capitalising on the greenback's weakness as well as tracking the performance of the US Commodity Exchange (Comex) gold futures.
Phillip Futures Sdn Bhd Dealer, Chu Ching Yong, said Bursa Malaysia gold futures prices would continue its uptrend as the US dollar stayed weak.
"The Comex gold hit a three-week high on Friday and was on track for a second straight weekly gain as the US dollar tumbled to a 13-month low," he told Bernama.
For the week just-ended, the gold market was traded higher, mainly tracking the performance of the Comex gold market.
On a Friday-to-Friday basis, spot month July 2017 surged 60 ticks to RM169.25, August 2017 added 58 ticks to RM172.75 a gramme, September 2017 gained 53 ticks to RM172.90 and October 2017 improved 50 ticks to RM173.60 a gramme, respectively.
Weekly turnover for the week slipped to 26 lots worth RM239,855 versus 68 lots worth RM1.76 million last week.
Open interest on Friday was higher at 234 contracts from 232 contracts previously. — Bernama