Suez Canal blockage seen boosting FBM KLCI
KUALA LUMPUR: The FTSE Bursa Malaysia KLCI (FBM KLCI) could trade in the 1,600 to 1,615-point range next week with an upside bias as investors focus on whether the Suez Canal blockage can be resolved swiftly.
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said failure to do so would raise the prospect of further delays to supply chains.
“The situation could be a positive for oil price as charter rates for oil tankers transporting oil will rise and, thus, impact oil price,” he told the New Straits Times.
Adam said the ringgit, which has a strong relationship with oil price, could appreciate to between 4.12 and 4.13 against the US dollar next week.
He added that any negative development about the joint Western sanctions against Chinese officials could exert a downward pressure on ringgit.
Meanwhile, the FBM KLCI ended 3.69 points higher to 1,601.4 yesterday as the global economic recovery became the focal point among investors.
“This came about as the United States Labour Department data
showed unemployment claims dropped to the year’s low during the week ended March 19, indicating that the US economy was on the pathway to better growth as the public health situation improves,” said Adam.
On a sectoral basis, the Transportation and Logistics Index led gainers with a 1.8 per cent advance, helped by port operators such as MMC Corporation Bhd and Westports Holdings Bhd.
This is because the Suez Canal blockage is seen to have a minimal impact on Port Klang and Port of Tanjung Pelepas.