Bursa Malaysia to trend higher towards 1,880 level next week

KUALA LUMPUR: Bursa Malaysia is expected to trend higher towards the 1,880 level next week, driven by stronger crude oil prices, an accommodative monetary policy and improvement in consumer sentiment.
Hermana Capital Bhd's Chief Executive Officer and Chief Investment Officer Datuk Dr Nazri Khan Adam Khan said the government's recent announcement on zero-rates Goods and Services tax (GST) is expected to improve consumer sentiment and lift consumer counters.
"This (zerorising of GST) will be a boost to private consumption," he told Bernama.
He said strong crude oil prices, with the benchmark Brent hitting US$80 per barrel on Thursday, the highest level in four years, would also be a mitigating factor for the local bourse, especially oil and gas counters.
Meanwhile, he said Bank Negara Malaysia's (BNM) assurance over keeping interest rates accommodative would bring further stability to sentiment on Bursa Malaysia.
On developments overseas, Nazri Khan said investors would be watching events surrounding the US-China trade talks.
"Hopefully, it (trade talks) will be fruitful. This would boost our own exports," he added.
For the week-just-ended, Bursa Malaysia closed mostly higher on sustained buying momentum in selected heavyweights, as well as situational counters.
Bursa Malaysia started off the first day of trading under the new government, surprisingly better-than-expected, and closed in positive territory when compared to expectations that it would close lower due to a knee-jerk reaction to the defeat of the ruling Barisan Nasional coalition to Pakatan Harapan.
On a Friday-to-Tuesday basis, the benchmark FTSE Bursa Malaysia KLCI was 7.99 points higher at 1,854.5 from 1,846.51.
The FBM Emas Index eased 22.49 points to 12,863.22, the FBMT100 Index eased 35.08 points to 12,663.36, the FBM 70 slid 350.89 points to 14,952.37 and the FBM Emas Syariah Index fell 129.72 points to 12,945.64.
The FBM Ace improved 172.77 points to 5,385.1.
On a sectoral basis, the Finance Index surged 237.7 points to 18,328.29, the Industrial Index expanded 107.34 points to 3,303.89 and the Plantation Index rose 72.52 points to 7,922.24.
Weekly turnover rose to 20.14 billion units worth RM21.61 billion from 4.27 billion units worth RM4.89 billion.
Main market volume increased to 13.97 billion shares worth RM20.6 billion from 2.39 billion shares worth RM4.53 billion.
Warrants turnover grew to 3.67 billion units valued at RM523.83 million versus 1.22 billion units valued at RM235.14 million.
The ACE market volume expanded to 2.46 billion shares worth RM472.54 million from 643.35 million shares worth RM122.59 million.
Gold futures contracts on Bursa Malaysia Derivatives is likely to stage a rebound next week on a technical correction after a lacklustre performance during the week, said a dealer.
Phillip Futures Sdn Bhd Dealer Amberlyn How said Bursa Malaysia gold futures is expected to pick up on buying demand from investors.
"The current low prices in local gold, will likely see investors buying next week," How told Bernama.
The market was closed last Wednesday for the 14th General Election, as well as on Thursday and Friday, to observe special public holidays in conjunction with the Pakatan Harapan coalition's victory.
On a Friday-to-Tuesday basis, May 2018 dipped RM39 to RM165.05 per gramme, June 2018 and July 2018 each fell RM25 to RM165.85 and RM166.25 per gramme respectively, while August 2018 eased RM23 to RM166.35 per gramme.
Weekly turnover increased to 18 lots worth RM301,155 from seven lots worth RM116,910 from the previous week, while open interest decreased to 46 contracts from last Tuesday's 49 contracts. — Bernama