KUALA LUMPUR, Aug 16 — Bursa Malaysia is expected to trend higher next week, supported by a slow boost in risk-taking sentiment amid the strengthening of the ringgit, said Affin Investment Bank Vice-President and Head of Retail Research Dr Nazri Khan Adam Khan.

He said there should be more upside momentum following the strong reversal over the past week where the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) breached through the 1,860 level to a new one-week high after a series of negative raft of economic data.

“The momentum would be supported by waning geopolitical worries and ultra-easy monetary policy driven by some sour global economic data,” he told Bernama.

He added the local market should also be supported by Malaysia’s strong economic growth coupled with Bank Negara Malaysia’s decision to keep the overnight policy rate unchanged at 3.25 per cent even though inflation had accelerated in June.

In the second quarter of this year, the national gross domestic product grew by 6.4 per cent, underpinned by higher exports and higher private domestic demand.

Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz said the economic growth projection for 2014 had been revised upwards to more than 5.5 per cent from an earlier forecast of between 4.5 per cent and 5.5 per cent.

For the week-just-ended, the FBM KLCI rose 24.44 points to 1,864.31 on Friday from 1,839.87 points recorded on last Friday.

The Finance Index soared 212.36 points to 17,291.78, Industrial Index chalked up 102.73 points to 3,257.42 but the Plantation Index eased 30.25 points to 8,869.3.

The FBM Emas Index improved 165.36 points to 13,058.35, FBMT100 Index was 152.07 points higher at 12,613.68, FBM 70 advanced 122.13 points to 14,373.27 and the FBM Ace chalked up 217.35 points to 7,282.74.

Weekly turnover rose to 17.14 billion shares, valued at RM11.93 billion from 15.28 billion shares, valued at RM11.39 billion last week.

Main market volume increased to 12.91 billion units worth RM11.14 billion from last Friday’s 11.57 billion units worth RM10.7 billion.

Warrants turnover jumped to 745.74 million units, valued at RM162.15 million from 214.84 million units, valued at RM29.15 million last Friday.

The ACE market volume increased to 3.4 billion shares, worth RM603.01 million from 3.36 billion shares, worth RM635.92 million previously. — Bernama