Bursa Malaysia expected to break 1,700 psychological level

by BERNAMA/ FILE PIX

Bursa Malaysia is expected to trend higher next week, with the key FTSE Bursa Malaysia KLCI (FBM KLCI) breaking the psychological level of 1,700, and poised to march into the new year with a big bang. 

Inter-Pacific Asset Management Sdn Bhd chief executive officer Datuk Dr Nazri Khan Adam Khan said positive sentiment in the market has also managed to offset some weak market influencers such as Fitch rating downgrade, several unfavourable economic data and external shocks.

He said foundation in the local market has strengthened as investors now perceive Bursa as a safe-haven market amid correction in the United States.

“We have optimism to see economic recovery, a strong one into January and the fact that there is no knee-jerk reaction (due to Fitch downgrade) as what many people anticipate, which is very good.

“That shows we have resilient, relative strength Bursa. We will not see any outflow in fact a huge inflow into the market (next week),” he told Bernama.

On prospects for the remaining days of 2020, Nazri Khan said the infrastructure-linked stocks, banks, construction, property and telco would remain higher.

He does not expect profit-taking to take place soon but likely one or two weeks after Christmas.

For the week-just-ended, Bursa Malaysia recorded a five-day winning streak with the key index ending the week at its 18-month high – a level that was last seen on July 4 last year.

The benchmark FBM KLCI rose 62.73 points to 1,684.58 from 1,621.85 registered a week earlier.

It started the week higher backed by positive market sentiment following the relaxation of Conditional Movement Control Order measures and the assurance of COVID-19 vaccine supply in Malaysia next year.

Strong gains in Top Glove, CIMB, and Public Bank helped save the local bourse from joining the regional bandwagon which is mostly on the downtrend due to concerns over rising COVID-19 cases.

Buying-spree in the banking stocks on expectations that the economy would do well next year and overnight policy rate (OPR) kept unchanged, continued to drive FBM KLCI to end the week stronger.

On the scoreboard, the FBM Emas Index surged 344.99 points to 12,085.71, the FBMT 100 Index climbed 354.78 points to 11,848.74, the FBM 70 bagged 120.46 points to 15,370.01 and the FBM ACE Index soared 446.13 points to 11,071.1.

However, the FBM Emas Shariah Index fell 75.64 points to 13,431.53.

Sector-wise, the Financial Services Index ballooned 1,528.68 points to 16,046.13 reflective of the buying-spree, the Plantation Index was 62.69 points higher at 7,412.09, and the Industrial Products and Services Index gained 3.88 points to 177.67.

The Technology Index slipped 0.74 of-a-point to 66.4, the Energy Index added 28.51 points to 948.32 while the Healthcare Index gave up 100.24 points to 3,822.49 weighed down by COVID-19 vaccine news.

Weekly turnover increased to 57.76 billion units worth RM31.32 billion from 54.02 billion units worth RM31.40 billion last week.

Main Market volume rose to 35.93 billion shares valued at 25.03 billion versus 34.65 billion shares valued at 25.85 billion previously.

Warrants turnover expanded to 4.74 billion units worth RM821.83 million from 3.72 billion units worth RM687.85 million in the previous week. 

The ACE Market volume improved to 17.08 billion shares valued at RM5.45 billion from 15.63 billion shares valued at RM4.85 billion previously.