KUALA LUMPUR: Bursa Malaysia is expected to trend higher next week, tracking the global equity momentum, amid a stronger Wall Street performance and possible Brexit deal.
Phillip Capital Management senior vice-president (investment) Datuk Dr Nazri Khan Adam Khan said the sentiment was expected to remain positive following firmer Wall Street performance last week, on the back of robust US corporate earnings and as the broad market remained hopeful of a Brexit deal ahead of the month-end.
He said China’s unexpected injection of US$28 billion (RM117.22) cash ahead of its growth data announcement had also helped to stimulate the market.
Overall, he noted that growing concerns of a global economic slowdown and looming external uncertainties arising from trade disputes continued to weigh on the domestic market.
However, the local market should move higher as hopes of a Brexit deal temporarily offset the caution on the certainty of the first US-China trade deal.
“We expect more upside ahead despite data showing that China, the world’s second-largest economy grew at its slowest pace in almost three decades in the third quarter.
“We expect the benchmark FTSE Bursa Malaysia (FBM KLCI) should edge higher towards the 1,600 level,” he told Bernama.
On the technical front, Nazri Khan said the FBM KLCI had rebounded and breached above the 1,570-point mark, which showed an encouraging upside development.
“We expect to see a steady upside development in the coming sessions with the immediate support at 1,570 points followed by 1,530, while the resistance levels are spotted at the 1,600 and 1,660-point thresholds,” he said.
He added next week’s stock recommendation included Globetronics Technology Bhd and D&O Green Technologies Bhd, both in the technology sector.
On Friday, Bursa Malaysia closed 3.35 points lower on profit-taking following a mild rally previously.
On a week-on-week basis, the FBM KLCI strengthened 14.31 points to 1,571.15 from last week’s close of 1,556.84.
The FBM Emas Index rose 111.93 points to 11,189.74, the FBMT 100 Index bagged 109.36 points to 11,004.80 and the FBM Emas Shariah Index expanded 84.86 points to 11,801.23.
The FBM 70 gained 177.80 points to 14,121.77 and the FBM Ace Index increased 164.11 points to 4,783.24.
Sector-wise, the Financial Services Index surged 284.30 points to 15,274.63, the Industrial Products and Services Index was 2.13 points better at 152.56, and the Plantation Index added 83.84 points to 6,624.73.
Weekly turnover widened to 13.96 billion units valued at RM9.91 billion from 11.13 billion units valued at RM7.86 billion previously.
Main Market volume was higher at 8.83 billion shares worth RM8.82 billion compared with 6.72 billion shares worth RM7.01 billion.
Warrants turnover was better at 1.80 billion units valued at RM320.46 million compared with 1.77 billion units valued at RM299.98 million.
The ACE Market volume firmed up to 3.33 billion shares worth RM770.65 million from 2.62 billion shares worth RM547 million. — Bernama
