Bursa Malaysia likely to be firmer

KUALA LUMPUR: Bursa Malaysia is likely to be firmer with bargain hunters expected to be actively participating in the market as the local bourse has been on the downtrend for almost eight weeks.

Affin Hwang Investment Bank vice-president and head of Retail Research, Datuk Dr Nazri Khan Adam Khan said bargain hunters were likely to be snapping up shares that had been declining in recent months.

“The benchmark index is likely to touch the 1,750 level,” he said, adding that strong external factors would also bring about a feel-good factor to the local market.

He told Bernama that improving oil prices, commodities prices as well as the appointment of a new Federal Reserve Chair would restore investors’ confidence in the Fed policy.

“Asian equities markets and Dow Jones are moving on the uptrend and why would Malaysia be on the opposite trend,” he asked.

He added that the local market was expected to be inspired by the upbeat momentum in regional markets.

The FTSE Bursa Malaysia KLCI (FBM KLCI) finished on an easier note in the first week of November.

On a weekly basis, the benchmark FBM KLCI shed 5.20 points to 1,740.93 from 1,746.13 last Friday.

The FBM Emas Index increased 11.55 points to 12,563.16, the FBMT 100 Index added 6.01 points to 12,197.48, the FBM Emas Shariah Index rose 29.17 points to 13,027.28 and the FBM 70 gained 165.15 points to 15,478.46. The FBM Ace fell 24.07 points to 6,857.27.

On a sectoral basis, the Finance Index gained 25.0 points to 16,283.44, the Plantation Index added 39.48 points to 7,990.95 and the Industrial Index contracted 26.56 points to 3,117.61.

Total turnover increased to 14.80 billion units valued at RM11.30 billion from 12.96 billion units valued at RM10.76 billion.

Main Market volume rose to 9.99 billion shares worth RM10.50 billion from 8.68 billion shares valued at RM9.97 billion previously.

Warrants turnover swelled to 1.31 billion shares worth RM111.45 million from 777.52 million units worth RM80.23 million last week.

The ACE Market increased slightly to 3.45 billion shares worth RM682.35 million from 3.43 billion units valued at RM695.06 million previously. — Bernama

KLIBOR

The three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) futures contract on Bursa Malaysia Derivatives is expected to remain quiet on lack of market catalysts.

For the week just-ended, the market was untraded with open interest remaining at nil.

On a Friday-to-Friday basis, November 2017, December 2017, January 2018 and March 2018 stood at 96.52, 96.50, 96.50 and 96.50, respectively.

The underlying three-month KLIBOR on the cash market remained at 3.43 per cent on Friday.

FBM KLCI

The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract on Bursa Malaysia Derivatives is likely to trend upwards, tracking the performance of the underlying cash market, a dealer said.

He said the market was expected to stage a rebound on strong external factors as well as the return of bargain hunters.

For the week just-ended, the futures market traded mixed in choppy trading in tandem with the cash market.

On a week-to-week basis, October 2017 stood at 1,744, November 2017 eased 5.5 points to 1,740, December 2017 slid 6.5 points to 1,740.5, March 2018 shed 6.0 points to 1,742 while new contract month June 2018 stood at 1,739.

Weekly turnover fell to 31,975 lots from 59,465 lots last Friday while open interest declined to 26,123 contracts from 45,514 contracts previously.

On Friday, the FBM KLCI ended 0.12 of-a-point lower at 1,740.93.

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