KUALA LUMPUR, Aug 6 — Bursa Malaysia is expected to continue its uptrend next week backed by positive factors such as recovery in the crude oil prices, country’s trade data and Bank of England’s (BOE) cut in interest rate.
Affin Hwang Investment Bank Vice-President/Retail Research Head, Datuk Dr Nazri Khan Adam Khan, said the rally in the crude oil prices would provide another lift to the local bourse next week. US crude oil prices settled 2.7 per cent higher at US$41.93 a barrel, a day after rising over three per cent amid a drawdown in oil inventories while international benchmark, Brent crude was up 2.67 per cent to US$44.25 a barrel.
Nazri said the sentiment on the local bourse also improved on upbeat trade surplus of RM41.79 billion in the first half of this year, which reflected Malaysia’s strong export sector.
“The benchmark FBM KLCI is ready to stage further upside if the ringgit and commodities continued to strengthen, with immediate support at the 1,690 points level while key resistance at the 1,677-1,667 points level,” he told Bernama.
Nazri said another factor that boosted the market was the cut in interest rate by the Bank of England from 0.5 per cent to 0.25 per cent and the stimulus programme to soften the economic shock after the ‘Britain exit’ (Brexit)referendum to leave the European Union.
“The BOE has decided to cut its lending rate for the first time in more than seven years to a new record low of 0.25 per cent from 0.5 per cent as measures to prevent post-Brexit recession.
“The rate cut was seen as a good move as it will benefit the ringgit and those who would like to seek loans from the bank,” he said.
For the week-just-ended, the local market saw range-bound trading, helped by trading in heavyweights led-by energy stocks, trade and services, industrial stocks as well as volatile in the crude oil prices.
On a Friday-to-Friday basis, the FBM KLCI added 10.78 points to 1,664.04 from 1,653.26 the previous week.
The FBM Emas Index surged 92.25 points to 11,677.36, FBMT 100 Index rose 94.31 points to 11,378.09 and the FBM Emas Shariah Index increased 93.03 points to 12,291.80.
On a sectoral basis, the Finance Index surged 81.31 points to 14,267.76, Industrial Index rose 25.13 points to 3,120.28 and the Plantation Index increased 134.47 points to 7,696.71.
Weekly turnover increased to 10.02 billion units worth RM8.94 billion from 8.88 billion units worth RM8.72 billion last week.
Main market volume fell to 6.25 billion shares worth RM8.39 billion from 6.42 billion shares worth RM8.29 billion previously.
Warrant turnover advanced to 1.98 billion units valued at RM251.31 million from 852.88 million units valued at RM151.47 million last week.
The ACE market rose to 1.77 billion shares worth RM274.80 million from 1.59 billion shares worth RM271.98 million previously. — Bernama
