KUALA LUMPUR, Aug 27 — Positive news flow, such as a less hawkish stance by the US Federal Reserve, Chinese stimulus and a potential pre-Budget 2023 Bursa Malaysia rally are expected to boost the local bourse next week.
Inter-Pacific Asset Management Sdn Bhd executive director and fund manager Datuk Nazri Khan Adam Khan said the local bourse is expected to see vibrant trading given the external factors and pre-budget rally as well as Malaysia’s improved economic growth of 8.9 per cent in the second quarter of 2022 which would entice foreign investors to go for risky-assets.
“The announcement of Budget 2023 would trigger political play in the market, whereby politically connected stock to get impetus, especially construction companies.
“Not only that, window dressing and government stimulus will also lift up the activities,” he told Bernama.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said investors should remain cautious given the heightened market risks and volatility as profit taking might set in.
“Hence, we anticipate the FTSE Bursa Malaysia KLCI (FBM KLCI) to hover within the range of 1,495 points to 1,515 points for next week.
“Technical point of view we shall see an immediate resistance at 1,530-level while support at 1,470-level,” he added.
At Friday’s close, the FBM KLCI advanced 4.80 points to end at 1,500.29 compared with Thursday’s closing of 1,495.49.
On a weekly basis, the benchmark index fell 4.15 points to 1,500.29 from 1,504.44 at the end of the previous week, mainly due to external uncertainties and the corporate earnings season.
On the index board, the FBM Emas Index declined 31.05 points to 10,648.84, FBMT 100 Index decreased 29.90 points to 10,393.36, FBM Emas Shariah Index erased 55.63 points to 10,759.97, FBM 70 went down 41.29 points to 12,746.15 and FBM ACE shed 30.31 points to 4,956.37.
Sector-wise, the Financial Services Index improved 37.71 points to 16,763.69, Energy Index added 56.10 points to 727.44 but the Plantation Index fell 192.90 points to 7,054.34 and Industrial Products and Services Index eased 1.56 points to 182.18.
Weekly turnover widened to 12.14 billion worth RM8.8 billion from 12.58 billion units worth RM9.33 billion in the previous week.
The Main Market volume was lower at 7.98 billion shares valued at RM7.28 billion from 8.54 billion shares valued at RM7.88 billion in the previous week.
Warrants volume rose to 1.91 billion units worth RM294.73 million from 1.61 billion units worth RM241.46 million last week.
The ACE Market volume slipped to 2.24 billion shares valued at RM1.22 billion from 2.40 billion shares valued at RM1.21 billion the week before. — Bernama
