Bursa Malaysia Expected To Trend Higher Next Week

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KUALA LUMPUR, Dec 31 – Bursa Malaysia is likely to trend higher towards the 1,650-point level next week to usher in 2017 amid further recovery in the crude oil market, said a dealer. The dealer expected oil and gas stocks to be in focus if the crude oil market sustained its upward momentum next week and helped lift the benchmark index.

However, the dealer anticipated weak trading earlier in the week due to the absence of fresh leads and the end of window-dressing period before recovering towards the end of the week. The market would also continue to gauge the Wall Street performance for further clues, added the dealer.

Meanwhile, Affin Hwang Investment Bank Vice-President/Head of Retail Research, Datuk Dr Nazri Khan Adam Khan, said the US President-elect Donald Trump’s inauguration was expected to boost US stocks, which subsequently would provide a fillip to Asian stocks.  He added that the market would be monitoring Trump’s policy statements as he takes office on Jan 20. 

“The FTSE Bursa Malaysia KLCI’s (FBM KLCI) support level is seen between 1,600 and 1,620 while the resistance level is between 1,650 and 1,680 for next week,” he told Bernama.  On the week just-ended, the local bourse was traded mostly higher on window-dressing. 

Bursa Malaysia will be closed on Monday in lieu of the New Year holiday which falls on Sunday. On a week-to-week basis, the key index FBM KLCI rose 24.58 points to 1,641.73 from 1,617.15 last Friday. The FBM Emas Index jumped 150.24 points to 11,466.54, FBMT 100 Index rose 151.88 points to 11,189.09 and the FBM Emas Syariah Index was 122.85 points higher at 12,014.42.

The FBM Ace gained 22.09 points to 4,780.71 and the FBM 70 surged 116.95 points to 13,035.11. On a sectoral basis, the Finance Index expanded 222.2 points to 14,383.05, Industrial Index improved 59.74 points to 3,122.49 and the Plantation Index put on 81.87 points to 7,748.71.

Weekly turnover eased to 5.723 billion units worth RM5.637 billion from 5.80 billion units worth RM6.62 billion registered last Friday. Main market volume rose to 4.370 billion shares valued at RM5.444 billion from 4.04 billion shares valued at RM6.32 billion last week.

Warrant turnover shrank to 590.969 million units worth RM94.463 million from 849.92 million units valued at RM168.80 million last week. The ACE market decreased to 757.134 million shares worth RM97.771 million from 906.67 million shares worth RM134.91 million previously. 

Gold futures contract on Bursa Malaysia Derivatives, which ended the week on a bullish note, will likely continue its uptrend next week. Phillip Futures Sdn Bhd Dealer Chua Zheng Liang said the local gold market had been riding on the weakening ringgit, which presents foreign buyers with an opportunity to purchase the ringgit-denominated precious metal at a cheaper price. He said however, traders have to be aware of the possibility of a technical correction, which might occur due to profit-taking. 

On a Friday-to-Friday basis, spot month December 2016 added 61 ticks to RM167.15 a gramme, January 2017 rose 58 ticks to RM167 a gramme while February 2017 and March 2017 improved 60 ticks each to RM167.90 and RM168.70 a gramme, respectively. Weekly turnover advanced to 49 lots worth RM747,000 from 10 lots worth RM165,825 recorded last week. Open interest on Friday was higher at 288 contracts from 259 contracts previously. — Bernama

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