Bursa Malaysia likely to trade higher next week

KUALA LUMPUR: Bursa Malaysia is likely to trend higher next week with the key index, FTSE Bursa Malaysia KLCI (FBM KLCI), set to test the new resistance level of 1,780 in line with the recovery in commodity prices and the spillover effects of improved economic data, said an analyst. 
Affin Hwang Investment Bank Vice President and Head of Retail Research, Datuk Dr Nazri Khan Adam Khan, said higher trade surplus recorded in June 2017 announced on Friday would provide a boost to the market, alongside Dow Jones Industrial Average breaching a record high of 22,000 on Thursday.  
"We expect the market to continue the upward momentum next week. We have seen technology and gloves counters trading higher on Friday," he told Bernama.
Malaysia's export growth continued to outpace imports, with June 2017 trade at RM9.88 billion, marking the 236th consecutive month of trade surplus since November 1997 and the highest surplus since April 2016.          
Trade surplus in June 2017 stood at RM9.88 billion while Malaysia's total trade for the month increased by seven per cent to RM136.26 billion, up from RM127.38 billion recorded in June 2016. 
Another dealer said market participants would also monitor the release of US non-farm payrolls on Friday to gauge market movement next week.  
The market was in choppy throughout the week on lack of catalysts. 
On a weekly basis, the benchmark FBM KLCI advanced 7.45 points to 1,774.53 from 1,767.08 last week. 
The FBM Emas Index appreciated 28.24 points to 12,619.87, FBMT 100 Index rose 35.58 points to 12,268.19 and the FBM Emas Syariah Index was up 14.32 points to 12,744.01.
The FBM 70 fell 16.72 points to 14,956.75, and the FBM Ace eased 40.23 points to 6,576.41.
On a sectoral basis, the Plantation Index was 10.99 points higher at 7,850.78 and the Industrial Index declined 8.68 points to 3,265.33 and the Finance Index inched down 3.52 points to 16,822.86. 
Total turnover was slightly lower at 7.31 billion units worth RM9.79 billion from 7.87 billion units worth RM9.03 billion last week. 
Main Market volume was marginally higher at 5.10 billion shares valued at RM8.87 billion from 5.08 billion shares valued at RM8.45 billion last Friday.
Warrants volume jumped to 1.20 billion units valued at RM173.04 million from 580.48 million units valued at RM63.99 million previously. 
The ACE Market turnover widened to 2.40 billion shares worth RM733.74 million from 2.17 billion shares worth RM506.05 million.
Gold futures contracts on Bursa Malaysia Derivatives are expected to trade higher next week, tracking the performance of the US Commodity Exchange (Comex) gold futures amid optimism of a weakening US dollar.
A dealer said US dollar hit multi-month lows as sentiment turned bearish of another interest rate hike in the world’s largest economy this year.
He said market-watchers would be eyeing the release of US non-farm payrolls, scheduled on late Friday evening, for further clues on the outlook for interest rates.
“Investors are cautious ahead of the release of the data. They are now awaiting for clues on whether the data will impact the timing of the US Federal Reserve's policy tightening,” he said.
For the week just-ended, the gold market traded mostly higher, mainly tracking the performance of the Comex gold market.
On a Friday-to-Friday basis, August 2017, September 2017 and October 2017 advanced 20 ticks each to RM174.30, RM174.40 and RM173.90 a gramme respectively.
Newly introduced November 2017 ended the week at RM174.10 a gramme.
Weekly turnover declined to 27 lots worth RM470,450 from 42 lots worth RM725,620 in the previous week.
Open interest decreased to 180 contracts from 279 contracts previously. — Bernama