KUALA LUMPUR, May 17 — The local bourse is expected to continue its upward momentum next week, benefiting from the global weakness and bracing for another stronger session riding on defensive funds inflow.

Affin Investment Bank Vice-President/Head of Retail Research Dr Nazri Khan said the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) will be boosted by small- and large-cap rotation coupled with easing-neutral monetary policies from major central banks — the US Federal Reserve, European Central Bank and Bank of England.

“Further strength on top Bursa dividend stocks namely Maybank, Axiata, TM, DiGi, Hong Leong Financial Group and IOI Corp suggest more upside bias for the FBM KLCI next week,” he told Bernama.

On the global front, Nazri said the US economic readings and first-quarter corporate earnings, which are expected to be favourable, would positively influence market sentiments with the FBM KLCI likely to touch the 1,900-point level.

He also said the latest upwardly revised global growth and emerging market outlook by the International Monetary Fund should bring more buyers into the market.

On a week-to-week basis, the FBM KLCI hit new highs for three consecutive days since Wednesday and closed the week on an all-time high of 1,883.34, rising 16.62 points from last Friday.

The market was closed on Tuesday for the Wesak holiday.

The Plantation Index, which received huge demand ahead of a possible El Nino threat, surged 214.09 points to 9,152.02, the Finance Index soared 60.09 points to 17,083.85, and the Industrial Index increased 23.42 points to 3,206.71.

The FBM Emas Index surged 91.74 points to 12,995.47, the FBMT100 Index chalked up 92.62 points to 12,644.8, the FBM Ace garnered 79.91 points to 6,669.4 and the FBM 70 improved 28.26 points to 14,032.11.

Weekly turnover expanded to 6.71 billion shares worth RM8.66 billion, from the 6.59 billion shares worth RM8.28 billion transacted the previous Friday.

Main market volume slipped to 5.32 billion shares valued at RM8.29 billion, from last week’s 5.85 billion shares valued at RM7.77 billion.

Warrant turnover appreciated to 179.98 million units worth RM37.02 million, from 160.61 million units worth RM24.39 million previously. The ACE market volume narrowed to 1.2 billion shares valued at RM323.76 million, from 1.98 billion shares valued at RM468.45 million. — Bernama