KUALA LUMPUR: Bursa Malaysia is expected to recover further with the benchmark FTSE Bursa Malaysia (FBM KLCI) seeing a positive spillover from external and internal factors, particularly the 2020 Budget tabled on Friday.
Philip Capital Management senior vice-president (investment) Datuk Dr Nazri Khan Adam Khan said following the higher overnight close of Wall Street, the FBM KLCI should recover further on hopes for some concessions from the trade talks, and confidence for selective sectors from the 2020 Budget.
“On the fundamental front, the total foreign holdings of government debt expanded by 0.5% to RM189.1 billion, as foreign investors turned net buyers of Malaysia’s debt securities in September,” he told Bernama.
He also said the share of total foreign holdings of Malaysia’s debt was unchanged for two consecutive months at 12.7%, while the total outstanding debt increased to RM3 billion in September.
“However, the capital market registered a net inflow of RM0.3 billion in foreign funds despite the uncertainty in the global economy,” said Nazri.
He said Malaysia’s total palm oil stocks in September was up 9.3% to 2.448 million tonnes compared with 2.241 million tonnes in August.
According to the Malaysian Palm Oil Board, crude palm oil stocks and production increased by 4.84% and 1.15% respectively.
Meanwhile, palm oil and oleochemical exports recorded a decline of 18.77% and 13.77%, respectively.
Looking forward, Nazri said the World bank has commented that the risk to Malaysia’s economic growth outlook continued to tilt towards the downside in anticipation of a sharper than expected slowdown in major economies and the prolonged trade war which could weigh on the nation’s export demand in the near-term.
“We expect that an increased uncertainty in global economies could lead to more subdued business sentiment in the domestic market.
“However, the 2020 Budget could provide a positive tone to the market as we expect it to recover in time on the hope of a stimulus.This week’s stock recommendations are MISC Bhd from the transportation & logistics sector and Wah Seong Corporation Bhd for energy..
On Friday, Bursa Malaysia closed 4.97 points higher on a positive reception to the 2020 Budget.
On a week-on-week basis, the FBM KLCI weakened 0.83 of-a-point to 1,556.84 from last week’s close of 1,557.67.
The FBM Emas Index rose 29.29 points to 11,077.81, the FBMT 100 Index bagged 21.11 points to 10,895.44 and the FBM Emas Shariah Index expanded 69.75 points to 11,716.37.
The FBM 70 gained 137.49 points to 13,943.97 and the FBM Ace Index increased 109.84 points to 4,619.13.
Sector-wise, the Financial Services Index declined 7.06 points to 14,990.33, the Industrial Products and Services Index slid 0.83 points to 150.43, and the Plantation Index contracted 27.09 points to 6,540.89.
Weekly turnover narrowed to 11.13 billion units valued at RM7.86 billion from 9.73 billion units valued at RM7.26 billion previously.
Main Market volume was higher at 6.72 billion shares worth RM7.01 billion compared with 5.83 billion shares worth RM6.59 billion.
Warrants turnover was stronger at 1.77 billion units valued at RM299.98 million compared with 1.44 billion units valued at RM283.57 million.
The ACE Market volume firmed up to 2.62 billion shares worth RM547.00 million from 2.44 billion shares worth RM386.34 million. — Bernama
