Bursa Malaysia to move upwards with fund inflow next week

KUALA LUMPUR: Bursa Malaysia is expected move upwards, supported by the firmer ringgit against the US dollar and the continuation of foreign fund inflow, said a dealer.

Affin Hwang Investment Bank Vice-President and Head of Retail Research Datuk Dr Nazri Khan Adam Khan said the country received a net fund inflow of RM10 MALAYSIANALAYSIAN interbank offered ofed rates will be kept steady at currentt llevelsl nextt weekk amid the present manageable liquidity levels in the monetary system, dealers said.

They said that Bank Negara Malaysia ( BNM) would continue to enter the money market and call for tenders to keep the rates in check.

For the week under review, the central bank borrowed funds from both conventional and Islamic systems, including repo tenders.

A total of 37 money market tenders were well bid by market participants this week, including 17 in the conventional system and 17 in Islamic tenders.

BNM had also carried out three reverse repo tenders during the week to siphon off excess funds in the system.

The overnight Islamic reference rate stood at 2.97 per cent on Friday, while the one-, two- and three-week rates ranged from 3.02 per cent to 3.11 per cent. billion this year after experiencing outflows in the last three years.

He said year-to-date, the ringgit appreciated about 10 per cent against the greenback, while Bursa Malaysia grew by eight per cent.

“I expect the FTSE Bursa Malaysia KLCI (FBM KLCI) to move up to 1,780 level before the first week of 2018 as investors are snapping out stocks before year- end,” he told Bernama.

Besides that, Nazri Khan said recovery in commodity prices, including Brent crude and crude palm oil (CPO) also translated into a strong sentiment for Malaysia.

“Against these backdrop of strength, I believe the local market should be able to play catch-up with the rest of the world,” he told Bernama.

NazriKhanalsoexpectseconomic growth to remain healthy with a five per cent growth expected next year.

On the external front, he said the major US tax cuts approved this week were expected spur Americaneconomy, besideshaving a spillover effect on emerging markets like Malaysia.

On a Friday- to- Friday comparison, the FBM KLCI gained 7.17 points to 1,760.24, with the market being mostly influenced by window dressing and profit-taking ahead of the festive season.

The FBM Emas Index improved 72.91 points to 12,661.75, the FBMT 100 Index increased 77.42 points to 12,334.27, the FBM Emas Shariah Index surged 120.14 points to 13,010.87, the FBM 70 bagged 189.73 points to 15,650.44 and the FBM Ace added 37.08 points to 6,465.50.

On a sectoral basis, the Finance Index rose 8.32 points to 16,594.83, the Plantation Index improved 90.29 points to 7,900.40, while the Industrial Index advanced 12.37 points to 3,192.53.

Total turnover increased to 12.22 billion shares worth RM10.94 billion from 11.07 billion units worth RM13.65 billion last week.

Main Market volume slipped to 6.45 billion shares worth RM9.92 billion from to 7.09 billion shares valued at RM12.96 billion.

Warrants turnover was up at 1.03 billion units valued at RM178.09 million against last week’s 974.17 million units worth RM126.08 million.

The ACE Market expanded to 4.61 billion shares worth RM804.24 million from 2.95 billion shares valued at RM546.69 million transacted previously. — Bernama THE three- month Kuala Lumpur Interbank Offered Rate (KLIBOR) futures contract on Bursa Malaysia Derivatives is expected to remain quiet next week amid lack of trading direction.

For the week just ended, the market was untraded with open interest remaining at nil.

On a Friday-to-Friday basis, January 2018, February 2018 and March 2018 were all pegged at 96.55, 96.53 and 96.50, while newly introduced month June 2018 stood at 96.45.

The underlying three-month KLIBOR on the cash market remained at 3.43 per cent on Friday.