KUALA LUMPUR, May 2 — Bursa Malaysia is expected to continue its bullish momentum next week backed by the economic reboot after the country has been under the movement control order since March 18.
An analyst said that the market, which had seen a strong rebound after more than 40 days of volatile trading due to weak business sentiment, is now witnessing a positive improvement.
“As the main key index had surpassed the 1,400 benchmark; the next resistance level is located at 1,430 with the support at 1,380,” she said.
The government had previously announced that economic sectors have been allowed to resume with 100 per cent capacity, which will revive almost two million jobs in various segments.
Since the MCO has been in place, the country has lost almost RM100 billion in economic revenue as Malaysians were ordered to stay home to curb the pandemic from worsening.
For the broader market, she said that industries and consumers have recorded impressive gains over the week while the oil index has shown a strong recovery as oil prices rise.
“However, oil price volatility is likely to remain but the prediction that it would crash further to US$10 per barrel is now unlikely as economies worldwide had started to show signs of recovery as Covid-19 had slowed down,” she said.
Malaysia recorded two-digit cases in the past week and the Ministry of Health is expecting the daily number of cases to continue dropping to a single digit by next week.
As for the global market, she said that the US Federal Open Market Committee (FOMC) meeting had come to the conclusion that the current interest rate of nearly zero is expected to remain for a year as unemployment continues to plague the market due to Covid-19.
The US remained as the country with the highest number of coronavirus cases in the world as it holds one-third of the cases globally, surpassing China and Italy.
For the week just ended, Bursa Malaysia started on a volatile mode as oil prices crashed to below US$20 per barrel causing the local bourse to trade in range-bound mode.
However, it rebounded on Wednesday with an encouraging performance and closed on Thursday at a record week-high of 27.48 points at 1,407.78.
The market was closed on Friday in conjunction with Labour Day.
On a Friday-to-Friday basis, key index FTSE Bursa Malaysia KLCI (FBM KLCI) rose 37.93 points, erasing last week’s losses to close at 1,407.78.
On the scoreboard, the FBM Emas Index added 253.94 points to 9,808.58, the FBMT 100 Index grew 244.54 points to 9,677.21 and the FBM Emas Shariah Index expanded 296.41 points to 11,660.23.
The FBM 70 climbed 227.73 points to 11,660.23 and the FBM ACE Index upticked 345.92 points to 4,795.10.
Sector-wise, the Financial Services Index increased 218.85 points to 12,472.91, the Industrial Products and Services Index gained 4.76 points to 120.44 and the Plantation Index added 2127.55. points to 6,133.47.
In the holiday-shortended week, weekly turnover decreased to 20.88 billion units worth RM10.54 billion from 27.37 billion units worth RM14.07 billion last Friday.
Main Market volume shed to 13.19 billion shares worth RM8.81 billion from last week’s 19.60 billion shares worth RM12.62 billion.
Warrants turnover slipped to 995.99 million units worth RM2.30 billion from last Friday’s 1.90 billion units worth RM417.19 million.
The ACE Market volume meanwhile improved to 6.36 billion shares worth RM1.49 billion from 5.85 billion shares valued at RM1.04 billion. — Bernama
