KUALA LUMPUR: The FTSE Bursa Malaysia KLCI (FBM KLCI), being the key benchmark for Bursa Malaysia, is likely to trend higher towards the 1,850 points resistance level.
Head of Retail Research at Affin Hwang Investment Bank head Datuk Dr Nazri Khan said the accommodative Federal Reserve policy, positive external sentiment, positive global economic data and rising oil prices would drive the local bourse higher.
“Overall, the market’s technical posture is bullish and could see more upside follow-through in the early March session.
“FBM KLCI’s strength above the 1,830 level should have the potential to inspire a round of more buying pressure towards the 1,850 level,” he told Bernama.
On the domestic front, he said Malaysia’s healthy economic picture should attract more foreign funds inflow.
Dr Nazri said from the intermarket analysis perspective, the stronger leadership by economically-sensitive groups (construction and technology) and stronger gain from smaller cap stocks (FBMSmallCap & FBMAce) should suggest a healthy momentum in the near-term.
“Strategy wise, given that the short-term trend has turned positive towards 1,850, traders should accumulate and capitalise on the weaker ringgit and ride on upturns in ringgit-sensitive stocks.
“These includes our stocks like SPSetia, Harta, QL Resource, Bursa, KPJ, Unisem, MAA, MBM Resource, Homeriz and One World Group,” he recommended.
For the week just-ended, the FBM KLCI rose 13.34 points to 1,821.21 from 1,807.87 last Wednesday, the FBM Emas Index surged 104.88 points to 12,557.38, the FBMT100 Index soared 107.33 points to 12,233.95 and the FBM Emas Shariah Index was 169.67 points better at 13,120.63.
The FBM 70 shot up 187.82 points to 13,606.27 while the FBM Ace improved 25.96 points to 6,634.74.
Sector-wise, the Industrial Index advanced 70.36 points to 3,322.51 while the Finance Index gained 78.31 points to 15,989.08 but the Plantation Index trimmed 75.03 points to 8,009.67.
Weekly turnover increased to 10.45 billion units, worth RM10.62 billion, from 4.62 billion units, worth RM4.5 billion, recorded last week.
Main market volume rose to 5.91 billion shares, valued at RM9.8 billion, from 2.7 billion shares, valued at RM4.11 billion, previously.
Warrant turnover expanded to 402.92 million units, valued at RM75.57 million, from 235.08 million units, valued at RM37.39 million, recorded last week.
The ACE market volume also increased to 4.11 billion shares, worth RM736.36 million, from 1.68 billion shares, worth RM346.20 million, recorded last week. — Bernama