FBM KLCI still has room to grow, says May­bank IB

New Straits Times - - Business -

KUALA LUMPUR: There is still room for FTSE Bursa Malaysia KLCI (FBM KLCI) to go higher than the 1,730 level, which it sur­passed on Thurs­day, said May­bank In­vest­ment Bank (May­bank IB).

On Fri­day, the FBM KLCI closed 8.06 points, or 0.46 per cent higher, at 1,745.20 points after open­ing at 1,737.14 points in the morn­ing.

The re­search house said the bench­mark index had now en­tered a ter­ri­tory that had not been seen in 592 days.

“The tech­ni­cal land­scape is im­prov­ing. There is the sug­ges­tion that the bull still has a lot of en­ergy.

“For short-term out­look, we project the FBM KLCI to test be­tween 1,766 points and 1,777 points be­fore cor­rec­tion takes place,” it said in a re­port.

The FBM KLCI jumped 19.78 points to close to 1,737.14 points on Thurs­day, its high­est since Au­gust 2015.

The bench­mark edged higher and broke its pre­vi­ous high of 1,734 on for­eign buy­ing.

Mar­ket breadth was equally jovial, with gain­ers out­pac­ing losers by 666 to 286.

A to­tal of 3.39 bil­lion shares, worth RM3.58 bil­lion, changed hands on Fri­day.

De­spite the over­whelm­ingly pos­i­tive sen­ti­ment, May­bank IB ex­pected some con­sol­i­da­tion as the mar­ket di­gested its re­cent gains ahead of the week­end break.

“The bench­mark FBM KLCI index is ex­pected to range be­tween 1,730 and 1,745 points, with ma­jor sup­port lev­els at 1,705 and 1,690 points,” it said.

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