KUALA LUMPUR, Aug 20 — Bursa Malaysia will likely test the 1,700 resistance level next week, fueled by improving commodity prices and favourable external factors. Affin Hwang
Investment Bank Vice-President/Retail Research Head Datuk Dr Nazri Khan Adam Khan said the international benchmark Brent crude oil price was stronger at above US$50 (RM201) per barrel currently.
“This strong mode will likely have a spillover effect on Bursa Malaysia, which is already recovering by five per cent over the last two months.
“On favourable external factors, we are not expecting the US Federal Reserve to raise interest rates in September, while the European Central Bank and Bank of Japan will also likely loosen their monetary policies,” he told Bernama.
Furthermore, Nazri said foreign funds were starting to come back into Malaysia with foreign holding of Malaysian Government Securities currently at a high of 51 per cent.
On a Friday-to-Friday basis, the FBM KLCI added 3.53 points to 1,687.68, the FBM Emas Index gained 16.82 points to 11,851.58, FBMT 100 Index rose 25.38 points to 11,554.90 and the FBM Emas Syariah Index increased 22.42 points to 12,496.18.
On a sectoral basis, the Finance Index surged 0.32 of-a-point higher to 14,482.5, the Industrial Index fell 13.95 points to 3,175.12 and the Plantation Index jumped 160.59 points to 7,862.06. Weekly turnover increased to 13.31 billion units worth RM9.98 billion from 10.97 billion units worth RM8.73 billion last week.
Main market volume advanced to 7.25 billion shares valued at RM9.06 billion from 6.59 billion shares valued at RM8.34 billion previously.
Warrant turnover rose to 3.83 billion units valued at RM446.97 million from 3.01 billion units valued at RM315.38 million last week.
The ACE market improved to 2.22 billion shares worth RM463.08 million from 1.36 billion shares worth RM337.22 million. — Bernama
