KUALA LUMPUR: Bursa Malaysia is expected to increase further following the rebound in commodity prices and the recovery of the Chinese market after the recent sell-off.
Affin Hwang Investment Bank vice-president/head of Retail Research, Datuk Dr Nazri Khan Adam Khan, said Bursa Malaysia staged an impressive comeback, ending three straight weekly drops.
“The local exchange got further help from a strong rally in China, the source of much of the recent global anxiety and hefty rebounds for industrial commodity prices,” he told Bernama.
Nazri Khan said positive trend was also seen in commodities market with crude oil enjoying a very strong session as the return of risk appetite lifted prices from the six-year lows struck at the start of the week.
Brent oil, the international benchmark, settled 10.3 per cent higher at US47.56 a barrel, its biggest one-day rise since 2008.
He said other factor to drive the market was the establishment of a Special Economic Committee to arrest current economic crisis.
Such a move should be lauded as it may produce innovative solution to the current volatility, he said.
On a weekly basis, the benchmark FTSE Bursa Malaysia KLCI finished 38.07 points firmer at 1,612.74 propped up by bargain hunting following recent selldown and positive external development in the US and China.
The FBM Emas Index soared 226.07 points to 10,976.04, FBMT100 Index advanced 204.4 points to 10,7347.17, the FBM 70 increased 37.64 points to 11,573.83 but the FBM Ace shed 263.65 points to 4,947.08.
Sector-wise, the Finance Index surged 231.06 points to 14,363.38, Industrial Index went up 38.57 points to 3,065.06 but the Plantation Index contracted 44.32 points to 6,825.07.
Weekly turnover rose to 11.74 billion units worth RM12.16 billion from last week’s 9.79 billion units worth RM9.74 billion.
Main market volume expanded to 6.42 billion units valued at RM10.73 billion from 5.04 billion units valued at RM8.61 billion recorded last week.
Warrant turnover increased to 3.54 billion units worth RM1.08 billion from 3.31 billion units worth RM862.57 million recorded previously.
ACE market volume climbed to 1.76 billion units valued at RM342.95 million from last week’s 1.36 billion units valued at RM263.49 million. — Bernama