KUALA LUMPUR (July 23): Bursa Malaysia is expected to continue its positive momentum next week on the back of improved market sentiment and risk appetite, as concerns about global inflation and recession have toned down, said an analyst.
Inter-Pacific Asset Management Sdn Bhd executive director and fund manager Datuk Nazri Khan Adam Khan said the FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to trend between 1,450 and 1,480 next week.
“The heavyweight stocks are starting to recover and our market sentiment is getting better, especially in finance.
“The stocks have led Bursa Malaysia to be in positive territory last week as FBM KLCI broke its 4,600 resistance base within five trading days on Friday. It is an impressive performance,” he told Bernama.
Nazri also said support from Malaysia’s trading partners, especially China and the United States, had lifted the local bourse further.
“The US and China stocks ended higher supported by positive corporate earnings, especially in banking and technology sectors,” he said.
Back home, Nazri expects glove and banking stocks to see some movement in the coming week.
At Friday’s close, the FBM KLCI rose 15.48 points, or 1.07%, to 1,465.8 from Thursday’s close of 1,450.32.
On a weekly basis, the benchmark index expanded 47.36 points to 1,465.8, from 1,418.44 at the end of the previous week.
On the index board, the FBM Emas Index rose 348.19 points to 10,396.08, the FBM Emas Shariah Index increased 379.39 points to 10,461.74, the FBM 70 was 455.02 points higher at 12,450.03, the FBMT 100 Index climbed 338.09 points to 10,153.84, and the FBM ACE improved 229.34 points to 4,789.17.
Sector-wise, the Financial Services Index surged 442 points to 16,449.69, the Energy Index was 38.2 points higher at 642.84, and the Industrial Products and Services Index inched up 10.31 points to 177.04, while the Plantation Index added 210.52 points to 6,866.25.
Main Market volume was stronger with 6.8 billion shares valued at RM6.03 billion against 5.49 billion shares valued at RM4.2 billion in the previous week.
Warrants volume perked up to 1.53 billion units worth RM327 million versus 1.39 billion units worth RM256.9 million last week.
ACE Market volume jumped to 2.44 billion shares valued at RM572.31 million from 1.29 billion shares valued at RM346.46 million the week before.