FBM KLCI still has room to grow, says Maybank IB

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.