KUALA LUMPUR, March 30 — Bursa Malaysia is expected to be reinvigorated next week with the market range bound despite the gloomy global economic outlook, analysts said.
Phillip Capital Management Malaysia senior vice-president (investment) Datuk Mohd Nazri Khan Adam Khan said the FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to make an oversold rebound, driven by an overnight rally on Wall Street, dovish comments by global central bankers and optimism over the outcome of US-China trade talks.
“The FBM KLCI is seen now making a slow upside drift towards the 1,650-points support level, despite the recent global developments involving soft commodities, gold sliding below the US$1,300 psychological price and the thriving Dollar, all of which may indicate a positive outlook for the week ahead for the local share market,” he told Bernama.
Bank Islam chief economist Mohd Afzanizam Abdul Rashid said Bank Negara Malaysia’s (BNM) 2018 Annual Report released on Werdnesday, indicated easing monetary policy is warranted.
This was reflected in the range forecast of between 4.3 per cent and 4.8 per cent for the 2019 gross domestic product growth (2018: 4.7 per cent) with point estimates of 4.7 per cent (Bank Islam: 4.5 per cent).
“Private investment is expected to accelerate to 4.9 per cent growth in 2019 (2018: 4.5 per cent), suggesting private firms have been actively expanding their production capacity to improve their economies of scale,” he added.
On a Friday-to-Thursday basis, the benchmark FBM KLCI settled 23.03 points lower at 1,643.63.
The FBM Emas Index was 129.33 points easier at 11,553.84, the FBMT 100 Index decreased 129.84 points to 11,407.35 and the FBM Emas Shariah Index trimmed 67.09 points to 11,688.06.
The FBM 70 declined 39.91 points to 14,212.64, but the FBM Ace Index expanded 17.36 points to 4,832.15.
Sector-wise, the Financial Services Index fell 205.64 points to 16,969.13, the Plantation Index decreased 6.74 points to 7,186.11, and the Industrial Products and Services Index inched down 0.08 of-a-point to 168.93.
Weekly turnover fell to 11.73 billion units worth RM9.12 billion from 19 billion units worth RM13.22 billion previously.
Main Market volume slipped to 8.1 billion shares valued at RM8.34 billion compared with 10.06 billion shares valued at RM8.86 billion.
Warrants turnover advanced to 2.15 billion units worth RM460.75 million versus 2.38 billion units worth RM496.71 million.
The ACE Market volume was at 1.47 billion shares valued at RM315.91 million against 2.0 billion shares valued at RM426.95 million. — Bernama
