KUALA LUMPUR: The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to trade higher, tracking reduced geopolitical tensions and broad commodities strength driven by US dollar retreat and positive external factors.
Affin Hwang Investment Bank vice-president/head of retail research, Datuk Dr Nazri Khan Adam Khan, said externally, the bourse would see the spillover effects from the stimulus programmes by the European and Chinese central banks.
“We expect regional markets, including Bursa Malaysia, to get support from the latest round of People Bank of China’s liquidity injections and European Central Bank’s stimulus,” he told Bernama.
Furthermore, he said, the disruption of oil routes due to tensions in West Asia with Saudi Arabia sending war planes into Yemen in clashes with Iran would be positive to the local stock exchange.
Overall, he said, the FBM KLCI, which showed relative strength to settle above its multi-month resistance level of 1,800, should continue its winning streak on the back of a stronger oil and currency movements.
For the week just-ended, local stocks staged a solid rally on Tuesday before reversing some of the earlier gains later in the week on concerns over the geopolitical development in West Asia.
On Friday-to-Friday basis, the FBM KLCI gained 9.72 points to 1,813.37 from 1,803.65 last Friday.
The FBM Emas Index jumped 74.41 points to 12,458.65, FBMT100 Index perked 68.61 points to 12,147.74, FBM 70 increased 88.82 points to 13,381.86 and the FBM Ace expanded 56.85 points to 6,972.02. The Industrial Index improved 24.49 points to 3,345.91 and Finance Index rose 112.11 points to 15,080.56.
The Plantation Index eased 17.93 points to 7,784.12.
Weekly turnover decreased to 10.21 billion units worth RM9.5 billion from 10.37 billion units worth RM10.59 billion last week.
Main market volume fell to 6.06 billion shares valued at RM8.59 billion from 6.75 billion shares valued at RM9.65 billion the previous week.
Warrant turnover expanded to 587.89 million units worth RM138.51 million from 481.62 million units worth RM114.15 million last Friday.
The ACE market volume declined to 3.54 billion shares valued at RM764.99 million from 4.16 billion shares valued at RM814 million last week. — Bernama