Bursa M'sia likely to be firmer next week

KUALA LUMPUR: Bursa Malaysia is likely to be firmer next week with bargain hunters expected to be actively participating in the market as the local bourse has been on the downtrend for almost eight weeks.
Affin Hwang Investment Bank Vice-President and Head of Retail Research, Datuk Dr Nazri Khan Adam Khan said bargain hunters were likely to be snapping up shares that had been declining in recent months.
"The benchmark index is likely to touch the 1,750 level next week," he said, adding that strong external factors would also bring about a feel-good factor to the local market.
He told Bernama that improving oil prices, commodities prices, as well as the appointment of a new Federal Reserve Chair, would restore investors' confidence in the Fed policy.
"Asian equities markets and Dow Jones are moving on the uptrend and why would Malaysia be on the opposite trend," he asked.
He added that the local market was expected to be inspired by the upbeat momentum in regional markets.
The FTSE Bursa Malaysia KLCI (FBM KLCI) finished on an easier note in the first week of Nov.
On a weekly basis, the benchmark FBM KLCI shed 5.20 points to 1,740.93 from 1,746.13 last Friday.
The FBM Emas Index increased 11.55 points to 12,563.16, the FBMT 100 Index added 6.01 points to 12,197.48, the FBM Emas Shariah Index rose 29.17 points to 13,027.28 and the FBM 70 gained 165.15 points to 15,478.46.
The FBM Ace fell 24.07 points to 6,857.27.
On a sectoral basis, the Finance Index gained 25.0 points to 16,283.44, the Plantation Index added 39.48 points to 7,990.95 and the Industrial Index contracted 26.56 points to 3,117.61.
Total turnover increased to 14.80 billion units valued at RM11.30 billion from 12.96 billion units valued at RM10.76 billion.
Main Market volume rose to 9.99 billion shares worth RM10.50 billion from 8.68 billion shares valued at RM9.97 billion previously.
Warrants turnover swelled to 1.31 billion shares worth RM111.45 million from 777.52 million units worth RM80.23 million last week.
The ACE Market increased slightly to 3.45 billion shares worth RM682.35 million from 3.43 billion units valued at RM695.06 million previously.
The gold futures contract on Bursa Malaysia Derivatives is expected to trade cautiously next week, tracking the US Commodity Exchange's (COMEX) gold futures market.
Phillip Futures Sdn Bhd Dealer, Amberlyn How said COMEX gold futures market was expected to react to the US nonfarm payroll figures, which will be released Friday, as stronger data may not be supportive of gold prices.
"Bursa Malaysia gold tends to track COMEX gold futures closely for a clearer direction," she told Bernama.
Performance of the precious metal will also depend on the performance of the US dollar, which will be influenced by growing optimism over an interest rate hike next month.
For the week just-ended, gold futures contract on Bursa Malaysia was traded higher, in tandem with the uptrend in COMEX gold futures.
On a Friday-to-Friday basis, October 2017, November 2017, December 2017 and January 2018 rose 30 ticks each to RM175, RM175, RM175.50 and RM176 a gramme, respectively.
Weekly turnover increased to 32 lots worth RM573,770 from 28 lots worth RM487,040 in the previous week, while open interest narrowed to 80 contracts from 104 contracts previously. — Bernama