KUALA LUMPUR, Feb 22 — The FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to continue its upward momentum next week lifted by external bullish sentiment and rising commodity prices, a dealer said.

Affin Investment Bank Vice-President and Head of Retail Research Dr Nazri Khan said FBM KLCI should resume its upward path driven by reduced prospects for a shift in the US Federal Reserve’s tapering bias, recovering US economy, the unexpected liquidity boost from the Bank of Japan and rising commodity prices.

He said better commodities prices were likely to catapult local resource stocks such as oil and gas and plantation stocks thus benefitting the local stock market.

“We notice that crude palm oil, light crude oil and gold enjoyed the biggest monthly gain in six months, up 6.1 per cent, 7.8 per cent and 6.7 per cent, respectively, as traders scrambled to cover short positions with most commodities drawing support from a weak US dollar,” he told Bernama.

Going forward, Nazri expected a firmer market action after the local stock market advanced for the fourth straight week, gaining a total of 59 points or 3.3 per cent since February 4.

He said the fact that the FBM KLCI scored a sizeable monthly gain in February despite signs of weakness in the Chinese economy showed near-term relative strength.

On the technical front, he said the near-term bias had turned in favour of the bullish traders camp with immediate support pegged near 1,800 and 1780 levels while resistance spotted near 1,830 followed by 1,850 levels.

“The fact that the FBM KLCI has broken above the 1,800 psychological level may suggest stronger bulls ahead,” he said, adding that the weekly market breadth remained positive with gainers edging losers 3.8 to 3 on impressive average daily trade totalling 2.8 billion shares worth RM2.4 billion.

On a week-to-week basis, the FBM KLCI increased 11.37 points to 1,830.74, the Finance Index strengthened 11.16 points to 16,564.28, the Industrial Index gained 36.91 points to 3,134.82 and the Plantation Index jumped 193.24 points to 8,541.87.

The FBM Emas Index rose 83.62 points to 12,667.86, the FBMT100 Index grew 59.88 points to 12,326.01, the FBM Ace surged 401.33 points to 6,704.13 and the FBM 70 was 2.1 points better at 13,813.46.

Weekly turnover improved to 15.74 billion shares, worth RM12.18 billion, from last Friday’s 12 billion shares worth RM10.36 billion.

Main market volume rose to 12.54 billion shares, valued at RM11.39 billion, from 9.32 billion shares valued at RM9.53 billion last week.

Warrants’ turnover increased to 169.87 million units, worth RM16.84 million, from 112.13 million units, worth RM16.21 million, registered previously.

The ACE market volume improved to 2.99 billion shares, valued at RM742.73 million, from 2.45 billion shares, valued at RM728.59 million, transacted last week. — Bernama