KUALA LUMPUR, April 15 ― Bursa Malaysia is expected to trend higher next week on optimism regarding the end of United States (US) Federal Reserve's rate hike cycle on signs of cooling inflation.

It was due to the lower US Consumer Price Index (CPI) and Producer Price Index (PPI) data.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said that at home, the market expectations on corporate earnings is also positive and contribute to the possibility of the uptrend next week.

"We expect the market undertone to remain positive, thanks to easing concerns over inflation and interest rates while investors are counting on expectations of strong earnings of corporates to lift investor sentiment,” he told Bernama.

Hence, he expects the FTSE Bursa Malaysia KLCI (FBM KLCI) to hover within the range of 1,430-1,445.

Meanwhile SPI Asset Management managing partner Stephen Innes said the prediction on more lenient monetary policy in the coming months by the US Fed will encourage risk-taking globally.

"It means that the investors will buy stocks in most jurisdictions such as Asia, Europe and the US,” he said.

The US CPI decreased to five per cent year-on-year in March from six per cent in February ― below the market’s expectation of 5.2 per cent and the lowest number recorded since May 2021.

Meanwhile the US PPI data slid to 2.7 per cent year-on-year in March from 4.9 per cent in February ― the lowest reading since January 2021.

During the week just ended, Bursa Malaysia was traded mixed on a volatile market.

On a Friday-to-Friday basis, the FBM KLCI gained 8.09 points to end at 1,435.13 from last week’s 1,427.04.

On the index board, the FBM Emas Index climbed up 90.47 points to 10,568.91, the FBMT 100 Index added 85.73 points to 10,246.77 and the FBM Emas Shariah Index perked up 120.18 points to 10,942.84.

The FBM 70 Index jumped 231.29 points to 13,870.04 and the FBM ACE Index advanced 41.50 points to 5,368.18.

Sector-wise, the Financial Services Index put on 32.93 points to 15,734.20, the Energy Index rose 14.28 points to 877.79, the Industrial Products and Services Index was 0.90 of-a-point higher at 175.65 and the Plantation Index went up 119.46 points to 6,851.13.

Weekly turnover was higher at 14.79 billion units worth RM8.88 billion versus 13.18 billion units worth RM7.71 billion last week.

The Main Market volume rose to 10.47 billion shares valued at RM7.60 billion against 9.47 billion shares valued at RM6.67 billion a week ago.

Warrant turnover was higher at 1.41 billion units worth RM224.74 million from 960.12 million units worth RM155.86 million previously.

The ACE Market volume widened to 3.32 billion shares worth RM1.04 billion from 2.73 billion shares worth RM874.88 million. ― Bernama