Bursa Malaysia to trend higher next week

KUALA LUMPUR: Backed by the current upward momentum and positive external sentiment, Bursa Malaysia is expected to trend higher next week.
Affin Hwang Investment Bank Vice-President/Head of Retail Research, Datuk Dr Nazri Khan Adam Khan said the external sentiment is expected to remain positive, despite the Federal Reserve's (Fed) hawkish stance that has sparked expectations of US Interest rates being aggressively increased this year.
On Wednesday, the Federal Open Markets Committee (FOMC) released minutes of the Jan 30-31 meeting which indicated optimism over stronger-than-expected US economic growth this year, and the possibility of more interest rate hikes ahead.
"Bursa Malaysia has remained resilient in tracking its Asian peers who performed very well last week. This is despite the Fed's hawkish stance, and hence, it is expected that the momentum would follow through next week," he told Bernama.
Nazri said with more Chinese traders returning to the market after the Chinese New Year holiday, the trading volume on regional markets is expected to further increase in sustaining the high momentum, as evident from the performance of the Hong Kong and the Japanese bourses last week.
"On the local front, volume has remained steady over the past weeks at an average of two billion shares transacted daily on average, firmer crude oil prices which stood around US$64 (RM251) to US$65 (RM256) per barrel, the stable ringgit currently quoted at a 3.9-level, plus improving global economies.
"This will boost the FBM KLCI's performance and increase investors' confidence," he added.
According to Nazri, Bursa Malaysia will also be supported by positive sentiment, brought on by Malaysia's strong economic data such as a widened current account surplus, steady foreign reserves and an increase in labour productivity.
"For next week the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) is likely to move between the 1,850 points support level and resistance at 1,880 points," he added.
On a Friday-to-Thursday basis, the FBM KLCI finished 23.22 points higher at 1,861.50.
The FBM Emas Index jumped 196.29 points to 13,313.78, the FBMT100 Index appreciated 175.81 points to 13,005.39 and the FBM Emas Shariah Index surged 456.29 points to 13,601.39.
The FBM 70 was up 267.26 points to 16,372.55 and the FBM Ace rose 207.42 points to 6,449.98.
On a sectoral basis, the Plantation Index gained 64.52 points to 8,061.49, the Industrial Index increased 49.47 points to 3,252.13, while the Finance Index advanced 407.37 points to 18,001.78.
Weekly turnover went up to 12.80 billion units worth RM11.26 billion from 6.46 billion units valued at RM7.76 billion.
Main market volume rose to 7.81 billion shares valued at RM10.31 billion from 4.08 billion units worth RM7.30 billion.
Warrant turnover increased to 2.96 billion units worth RM526.96 million from 1.24 billion units valued at RM242.26 million last week.
The ACE market advanced to 2.0 billion shares worth RM403.30 million from 1.10 billion units worth RM205.73 million.
Bursa Malaysia was closed on last Friday for the Chinese New Year celebration. — Bernama