Bursa M'sia will likely trend higher next week
KUALA LUMPUR: Bursa Malaysia will likely trend higher next week, with the benchmark index touching 1,850, driven by improved market sentiment due to declining global geopolitcal tensions and recovering commodity prices.
Affin Hwang Investment Bank Vice-President/Head of Retail Research, Datuk Dr Nazri Khan Adam Khan said there was relief in the market after US President Donald Trump accepted an invitation to meet North Korean leader, Kim Jong-Un by possibly May.
"We can see a steady decline in tensions between North Korea and the United States and this is a big relief for traders and investors all over the world.
"We also see the commodities market recovering now, given that global oil, rubber and crude palm oil prices have started to tick up. This is a good sign," he told Bernama.
On Friday, Brent crude futures was trading 0.3% higher at US$63.79 per barrel, while the US West Texas Intermediate crude futures rose 0.2% to US$60.24 a barrel.
On the local front, Nazri said election-linked stocks such as DRB-Hicom, Felda Global Ventures and MRCB would gain traction in the near-term with the 14th general elections looming large.
"I think this is a great catalyst for the market to firm up," he added.
On a Friday-to-Friday basis, the FBM KLCI finished 12.15 points easier at 1,843.92 from 1,856.07 previously.
The FBM Emas Index lost 205.01 points to 12,968.94, the FBMT100 Index depreciated 181.55 points to 12,711.9 and the FBM Emas Shariah Index dropped 249.84 points to 13,122.51.
The FBM 70 dipped 555.21 points to 15,423.27 and the FBM Ace slumped 182.81 points to 5,971.86.
On a sectoral basis, the Industrial Index decreased 33.59 points to 3,181.86, while the Plantation Index lost 35.83 points to 8,044.16 and the Finance Index fell 235.33 points to 17,992.74.
Weekly turnover went down to 12.94 billion units worth RM12.43 billion from 14.37 billion units worth RM14.20 billion.
Main market volume fell to 7.77 billion shares valued at RM11.62 billion from 9.22 billion shares valued at RM13.30 billion.
Warrant turnover fell to 2.35 billion units worth RM354.6 million from 2.44 billion units worth RM439.50 million.
The ACE market advanced to 2.8 billion shares valued at RM435.93 million from 2.67 billion shares valued at RM441.25 million. — Bernama