KUALA LUMPUR: Shares on Bursa Malaysia are likely to regain an upward momentum in tandem with regional peers.
Affin Hwang Investment Bank vice-president and head of Retail Research, Datuk Dr Nazri Khan Adam Khan said positive liquidity from external markets including China and Europe could help boost the local market sentiment.
“This is despite the local market being under pressure on falling crude oil and crude palm oil prices,” he told Bernama.
Nazri Khan expects global stocks to strengthen due to a flurry of mega merger and acquisition activities and some encouraging German and Chinese economic data.
On the domestic front, he said the ongoing UMNO convention should also provide stronger near-term catalysts for local sentiment.
“Any positive surprises in the convention should draw more bulls back into Bursa Malaysia.
“We expect potential (UMNO) announcement, especially on Bumiputra Economic Empowerment Agenda for rural areas and Sabah/Sarawak, to provide catalysts to local construction/infrastructure government-linked companies,” he added.
For the week-just-ended, the benchmark index closed 9.02 points lower at 1,820.89, mostly influenced by the performance of regional markets well as local economic data.
The FBM Emas Index was 61.17 points higher at 12,539.10, the FBMT100 Index rose 73.12 points to 12,227.59, the FBM 70 increased 58.47 points to 13,582.18 but the FBM Ace lost 232.58 points to 6,319.75.
Sector-wise, the Industrial Index slid 58.31 points to 3,331.68, the Finance Index garnered 82.69 points to 16,275.66 and the Plantation Index rose 138.14 points to 8,333.51.
Weekly turnover increased to 9.49 billion shares worth RM9.20 billion from 8.68 billion shares worth RM8.30 billion last week.
Main market volume rose to 6.64 billion units valued at RM8.53 billion from 5.19 billion units valued at RM7.36 billion previously.
The ACE market volume however declined to 2.56 billion units worth RM633.43 million from 3.28 billion units worth RM916.63 million.
Warrants turnover improved to 229.69 million units valued at RM25.67 million versus last week’s 199.88 million units worth RM18.83 million. — Bernama