KUALA LUMPUR: Bursa Malaysia is expected to remain bullish with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) index trending towards the 1,700 points level, an analyst said.
Affin Hwang Investment Bank vice-president and Retail Research head Datuk Dr Nazri Khan Adam Khan said the improving ringgit, rising oil prices and growing conviction that the US Federal Reserve would not raise interest rate in the near-term bode well for the equity market.
“Given the positive catalyst as well as improved investor sentiment, immediate support and resistance level is set at 1,650 and 1,680 points, respectively,” he told Bernama.
Nazri said crude oil gained a big boost with Brent, the global crude oil benchmark, rising 2.3 per cent, week-on-week, as the dollar slipped in response to disappointing data on the US services sector, which fuelled worries that the country’s manufacturing woes were spreading.
“The falling dollar provided short covering fireworks that push commodity prices higher,” he said.
The market will be closed on Monday and Tuesday for Chinese New Year Celebration.
On a weekly basis, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) finished 5.34 points lower at 1,662.46 this holiday-shortened week.
But earlier in the week, a weaker US dollar and stronger oil prices helped the local stock market recoup losses due to an overbought correction.
The FBM Emas Index eased 41.09 points to 11,526.56, the FBMT100 Index declined 46.06 points to 11,233.8 and the FBM Emas Shariah Index decreased 78 points to 12,342.82.
On a sectoral basis, the Plantation Index shed 96.31 points to 7,819.89, the Industrial Index erased 67.02 points to 3,253.59 while the Finance Index advanced 15.27 points to 13,897.68.
Weekly turnover shrank to 6.64 billion units, worth RM8.11 billion, from 7.51 billion units, worth RM9.85 billion, recorded last week.
Main market volume fell to 4.66 billion shares, valued at RM7.71 billion, from 5 billion shares, worth RM9.36 billion, registered previously.
Warrant turnover decreased to 978.86 million units, worth RM171.3 million, from 1.10 billion units, worth RM203.07 million, traded last week. — Bernama