BURSA Malaysia is expected to trade firmer, boosted by an increase in investor confidence following the better-than-expected gross domestic product (GDP) data for the country released on Thursday.
Affin Hwang Investment Bank vice president/head of Retail Research Datuk Dr Nazri Khan Adam Khan said the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) would remain buoyant and touch 1,730.
“The FBM KLCI has been breaching the 1,700-point psychological barrier since Monday.
Along with the better economic data, it shows that confidence among investors is improving and this will lift buying momentum,” he told Bernama.
Bank Negara Malaysia announced that Malaysia’s GDP grew by 4.5 per cent in the fourth quarter of 2016 (4Q16), underpinned by continued expansion in private sector expenditure, leading to a full year growth of 4.2 per cent.
However, Nazri noted that the local stock market would also be influenced by the ringgit and commodity prices, as that of crude palm oil and crude oil.
“If the commodity prices can recover, it will definitely lend support to the local bourse,” he said, adding, the ringgit had started to stabilise at 4.45 against the US dollar recently.
Apart from that, he said the US Federal Reserve’s (Fed) decision on interest rates would also affect the benchmark index.
“Nevertheless, judging from the statement by Fed Chair Janet Yellen during her testimony before Congress recently, there seems to be no rush to increase interest rates,” he added.
For the week-just-ended, the local market saw range-bound trading, helped by trading in heavyweights led-by energy stocks, trade and services and industrial stocks, as well as the better-than-expected GDP data.
On a week-to-week basis, the FBM KLCI gained 8.74 points to 1,707.68 from 1,698.94 last Friday. — Bernama
KLIBOR
THE three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) futures contract on Bursa Malaysia Derivatives will likely see lacklustre trading.
On a Friday-to-Friday basis, February 2017 and March 2017 each remained pegged at 96.55, while April stayed at 96.53 and June 2017 was unchanged at 96.50.
The underlying three-month KLIBOR on the cash market stood at 3.43 per cent on Friday.
FBM KLCI
THE FTSE Bursa Malaysia KLCI (FBM KLCI) futures contracts will likely trend higher, tracking the better performance of the underlying cash market.
Affin Hwang Investment Bank vice president/head of Retail Research Datuk Dr Nazri Khan Adam Khan said the confidence of investors had lifted following the better-than-expected gross domestic product (GDP) data announced on Thursday.
“The KLCI has breached the 1,700-point psychological barrier since Monday, along with the better economic data, showing that the confidence of investors is improving and would lift buying momentum,” he told Bernama.
Bank Negara Malaysia announced on Thursday that Malaysia’s GDP grew by 4.5 per cent in the fourth quarter of 2016 (4Q16), underpinned by continued expansion in private sector expenditure, leading to a full year growth of 4.2 per cent.
Throughout last week, the futures contracts were traded mostly higher, tracking the performance of the equity market.
On a Friday-to-Friday basis, February 2017 surged 40 points to 1,709.5, March 2017 rose 10.5 points to 1,708.5, June 2017 added 12.5 points to 1,704.5 and September 2017 bagged 13.5 points to 1,700.
Turnover for the week increased to 24,043 lots from last Friday’s 16,511 lots.
Open interests improved to 28,959 contracts from 26,393 contracts last week.
The benchmark FBM KLCI ended the week 8.74 points better at 1,707.68 from 1,698.94 last Friday.