Bursa Malaysia to trend higher next week on better foreign fund support

BURSA Malaysia is likely to trend higher next week, recovering from profit-taking on Friday, riding on a better risk appetite especially from foreign buyers.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng reckoned market sentiment to remain positive next week despite the profit-taking seen on Friday, with the FBM KLCI to break the 1,500 level again soon.

He anticipated the benchmark index to trend within the 1,500 and 1,530 level for next week, with demand to be supported by buying from foreign investors.

“They have been selling over the past few weeks, but came back on Thursday with net buying of RM300 million.

“We advise investors to focus on large cap stocks such as banks and telcos, and domestically-driven stocks including construction and retail real estate investment trusts,” he told Bernama.

Another dealer said market players would be closely monitoring the development of the Cabinet line-up led by newly-appointed Prime Minister Datuk Seri Anwar Ibrahim as well as the fate of Budget 2023.

For the week just ended, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) moved in volatile trading as a result of the 15th General Election. 

The market rebounded strongly on Thursday following the clarity in the local political scene as the Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah consented to the appointment of Tambun Member of Parliament Anwar Ibrahim as Malaysia’s 10th Prime Minister, coupled with positive external developments that fuel investors’ risk appetite.

The FBM KLCI rallied to a near three-month high of 1,501.88 on Thursday, before retreating the next day due to profit-taking.

On Friday-to-Thursday basis, the key index rose 37.22 points to 1,486.54 on Friday, from 1,449.32 on last Thursday. The market was closed last Friday to enable electors to exercise their right to vote in GE15.

On the index board, the FBM Emas Index increased 297.55 points to 10,576.79, the FBMT 100 Index garnered 288.88 points to 10,299.69, the FBM 70 soared 478.85 points to 12,638.36, the FBM Emas Shariah Index expanded 288.85 points to 10,687.62, while the FBM ACE chalked up 276.72 points to 5,191.64.

Sector-wise, the Industrial Products and Services Index gained 6.76 points to 185.36, the Plantation Index bagged 63.08 points to 6,817.15, and the Energy Index earned 35.76 points to 759.09.

The Financial Services Index surged 523.36 points to 16,699.16 amid positive news that the United States Federal Reserve’s officials agreed for a slower pace of interest rate hikes.

Weekly turnover ballooned to 22.82 billion units worth RM13.19 billion from 10.53 billion units worth RM6.81 billion in the previous week.

The Main Market volume grew substantially to 17.84 billion shares valued at RM11.92 billion against last week’s 7.15 billion shares valued at RM5.93 billion.

Warrant volume widened to 1.84 billion units worth RM249.65 million from 1.57 billion units worth RM289.54 million previously.

The ACE Market volume expanded to 2.84 billion shares valued at RM1.02 billion from 1.80 billion shares valued at RM585.13 million. — Bernama