Bursa Malaysia likely to trend higher next week

Bursa Malaysia is likely to trend higher next week, with the key index to hover in the 1,470-1,500 range next week, said an analyst. 

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said buying sentiment in the local bourse would likely continue next week as buying support from local institutions had been apparent in the week just ended, coupled with improving retail participation within the domestic market. 

“(The local market) trended sideways for the week due to a lack of buying interests and selling of regional equities by foreign funds,” he told Bernama.

On Friday, global equities rose on hopes that China’s easing of its anti-COVID19 measures would help restore global supply chains and curb inflation. 

The global equity market is also likely to be influenced by the outcome of the US Federal Open Market Committee (FOMC) meeting on Dec 13-14, said another analyst.

SPI Asset Management managing partner Stephen Innes said next week was all about the US Consumer Price Index and what the US Federal Reserve’s signals for interest rates going forward after the hike of 50 basis points on Wednesday.

“On both counts based on current market-based inflation outlook, I do not think either will pose a problem for risk sentiment. But I’m turning more defensive on China after the big reopening bounce due to the expected surge in COVID-19 cases,” he told Bernama.

On a Friday-to-Friday basis, the key index eased 4.61 points to 1,477.19 from 1,481.80 on Friday last week.

On the index board, the FBM Emas Index decreased 45.79 points to 10,607.41, the FBMT 100 Index fell 48.30 points to 10,308.85, the FBM 70 dipped 124.97 points to 12,946.22, the FBM Emas Shariah Index eased 89.74 points to 10,788.17, while the FBM ACE chalked up 151.61 points to 5,517.5. 

Sector wise, the Industrial Products and Services Index ticked down 0.23 of-a-point to 181.59, the Plantation Index depreciated 79.97 points to 6,727.88, the Financial Services Index widened 48.62 points to 16,495.04 and the Energy Index went down 22.21 points to 777.90. 

Weekly turnover climbed to 18.68 billion units worth RM10.65 billion from 15.39 billion units worth RM12.23 billion in the previous week.

The Main Market volume went up to 11,73 billion shares valued at RM8.51 billion against last week’s 9.42 billion shares valued at RM10.67 billion. 

Warrants volume increased to 1.77 billion units worth RM373.42 million from 1.44 billion units worth RM247.57 million previously.

The ACE Market volume expanded to 5.18 billion shares worth RM1.76 billion from 4.53 billion shares valued at RM1.31 billion on Friday a week ago. — BERNAMA