FBM KLCI to stage mild upswing next week

KUALA LUMPUR: The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) is likely to stage a mild upswing next week to reach 1,730, while led by the recovery in oil prices and US President Donald Trump's tax overhaul plan, alongside cautious sentiment in the market.
Affin Hwang Investment Bank Vice-President and Head of Retail Research, Datuk Dr Nazri Khan Adam Khan said optimism over Trump's tax overhaul had led to the recent stronger Wall Street performance and is likely to continue into next week.
Early this month, the US Senate narrowly approved a tax overhaul, moving Republicans and Trump closer to slash taxes for businesses and the rich, while offering everyday Americans a mixed bag of changes.
"Meanwhile, Malaysia's economic indications are stable such as the international reserves standing at US$101.9 billion as at Nov 30, 2017. The ringgit has also strengthened against the US dollar by 10% year-to-date, indicating positive foreign fund inflows," he told Bernama.
However, Nazri Khan said the market was also cautiously monitoring rising political tensions in the Middle East after Trump announced a decision to recognise Jerusalem as Israel's capital.
On a Friday to Thursday comparison, the FBM KLCI gained 3.39 points to 1,721.25 from 1,717.86, with the market being mostly influenced by external factors.
The FBM Emas Index fell 62.91 points to 12,345.40, the FBMT 100 Index decreased 49.67 points to 12,019.79 and the FBM Emas Syariah Index lost 128.87 points to 12,791.28, as the FBM 70 trimmed 330.22 points to 15,110.26. The FBM Ace declined 79.22 points to 6,232.41.
On a sectoral basis, the Finance Index improved 62.71 points to 15,989.04, the Plantation Index shed 38.11 points to 7,856.08, while the Industrial Index slipped 23.58 points to 3,149.31.
Total turnover rose to 8.86 billion units worth RM12.05 billion from 7.87 billion units worth RM12.7 billion last week.
Main Market volume increased to 6.05 billion shares worth RM11.60 billion from 5.44 billion shares worth RM12.32 billion.
Warrants turnover was slightly higher at 982.47 million units worth RM134.08 million against last week's 938.2 million units worth RM102.83 million.

The ACE Market expanded to 1.80 billion shares worth RM822.99 million from 1.47 billion shares worth RM275.19 million transacted previously.
Gold futures contracts on Bursa Malaysia Derivatives are likely to remain under pressure next week on a stronger US dollar and anticipation of a US Federal Reserve interest rate increase by year-end.
Phillip Futures Sdn Bhd Dealer, Amberlyn How said the strengthening greenback following rising optimism over US tax reforms had caused global markets to adopt a more pro-risk approach over the bullion.
"This dampened the demand for gold which is seen as a traditional safe-haven asset," she told Bernama.
For the week just ended, the local gold price overall traded lower, although ending a 10-month low on Monday after the ringgit touched a 14-month high against the US dollar.
On a Thursday to Friday basis, December 2017 fell 98 ticks to RM164.90 a gramme, January 2018 and February 2018 gave up 108 ticks to RM165.30 and RM165.802 respectively, while new spot delivery month, March 2018 stood at RM166.50 a gramme.
Weekly turnover increased to 47 lots worth RM786,640 from 21 lots worth RM360,415 last week, while open interest on Friday was slightly lower at 102 versus 104 contracts previously. — Bernama