KUALA LUMPUR: Bursa Malaysia is expected to trade higher driven by a slow boost in risk-taking sentiment, a dealer said.
Affin Hwang Investment Bank head of Retail Research Datuk Dr Nazri Khan said sentiment is expected to improve on the back of calmer conditions with oil prices rebounding, the ringgit strengthening, easing tension over Greece and foreign central banks implementing policy accommodation.
“We see global easing with the central bank of Australia and People’s Bank of China becoming the latest to join policy easing,” he told Bernama.
He said the Reserve Bank of Australia cut its main interest rate by 25 basis points to a record low of 2.25 per cent, the first easing in 18 months, in response to slowing inflation and growth concerns.
Meanwhile, the People’s Bank of China surprised the markets by announcing a 50-basis point cut in the required reserve ratio, worth 600 billion yuan (US$96 billion) in liquidity, for major banks earlier than expected.
Locally, he said, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) has been able to recoup from the previous week’s plunge and recover from its worst levels following a better external front and stronger than expected global data such as US jobless claims and an upwardly revised eurozone growth outlook.
“Overall, the FBM KLCI showed a positive technical setup with major support now pegged at the 1,800 and 1,780 levels while the major area of resistance is spotted at the 1,830 and 1,850 levels,” he added.
He said some stocks are undertaking interesting corporate exercises which could stimulate market activity.
They include Sime Property’s proposed taking full control of Malaysia Land Development Co, Malaysia Airports continuing to expand airport facilities, and Felda Global Ventures getting approval to establish a company in Indonesia.
Other interesting stocks are AirAsia X, MK Land, Astro, Public Bank, Inari Amerton, Globetronic and TDM.
During the holiday-shortened week, the FBM KLCI jumped 31.99 points to 1,813.25 from 1,781.26 the previous week.
The market was closed on Monday and Tuesday for the Federal Territory Day (replacement) and Thaipusam holidays respectively.
The FBM Emas Index rose 189.98 points to 12,461.92, the FBMT100 Index soared 184.3 points to 12,162.75, the FBM 70 increased 86.95 points to 13,458.6 and the FBM Ace improved 75.95 points to 6,632.85.
Sector-wise, the Industrial Index went up 31.98 points to 3,278.6, the Finance Index surged 355.32 points to 15,857.19 and the Plantation Index garnered 81.89 points to 8,023.34.
Weekly turnover decreased to 5.98 billion units valued at RM6.93 billion from 9.74 billion units valued at RM11.07 billion previously.
Main market volume declined to 3.75 billion shares worth RM6.39 billion from 6.32 billion shares worth RM10.31 billion.
Warrant turnover narrowed to 261.78 million units worth RM76.46 million from 574.79 million units worth RM158.67 million.
The ACE market volume contracted to 1.96 billion shares valued at RM460.54 million from 2.84 billion shares valued at RM595.3 million. — Bernama