Index likely to test 1,780 on positive news
BURSA Malaysia is likely to trend higher this week with the key index, FBM KLCI, set to test the new resistance level of 1,780 in line with the recovery in commodity prices and the spillover effects of improved economic data, said an analyst.
Affin Hwang Investment Bank vice-president and head of retail research Datuk Nazri Khan said higher trade surplus recorded in June 2017 announced last Friday would provide a boost to the market, alongside Dow Jones Industrial Average breaching a record high of 22,000 last Thursday.
“We expect the market to continue the upward momentum next week (this week). We have seen technology and gloves counters trading higher on Friday,” he told Bernama.
Malaysia’s export growth continued to outpace imports, with June 2017 trade at RM9.88bil, marking the 236th consecutive month of trade surplus since November 1997 and the highest surplus since April 2016.
Trade surplus in June 2017 stood at RM9.88bil while Malaysia’s total trade for the month increased by 7% to RM136.26bil, up from RM127.38bil recorded in June 2016.
Another dealer said market participants would also monitor the release of US nonfarm payrolls last Friday to gauge market movement this week. The market was in choppy throughout the week on lack of catalysts.
On a weekly basis, the benchmark FBM KLCI advanced 7.45 points to 1,774.53 from 1,767.08 previously.
The FBM Emas Index appreciated 28.24 points to 12,619.87, FBMT 100 Index rose 35.58 points to 12,268.19 and the FBM Emas Shariah Index was up 14.32 points to KUALA LUMPUR
The three-month Kuala Lumpur Interbank Offered Rate (Klibor) futures contracts on Bursa Malaysia Derivatives are expected to be quiet this week on lack of market-moving news.
For the week just-ended, the market was untraded with open interest at nil. WEEKLY FBM KLCI 12,744.01.
The FBM 70 fell 16.72 points to 14,956.75, and the FBM Ace eased 40.23 points to 6,576.41.
On a sectoral basis, the Plantation Index was 10.99 points higher at 7,850.78 and the Industrial Index declined 8.68 points to 3,265.33 and the Finance Index inched down 3.52 points to 16,822.86.
Total turnover was slightly lower at 7.31 billion units worth RM9.79bil from 7.87 billion units worth RM9.03bil previously.
Main Market volume was marginally higher at 5.10 billion shares valued at RM8.87bil from 5.08 billion shares valued at RM8.45bil previously. Warrants volume jumped to 1.20 billion units valued at RM173.04mil from 580.48 million units valued at RM63.99mil previously.
The Ace market turnover widened to 2.40 billion shares worth RM733.74mil from 2.17 billion shares worth RM506.05mil. – Bernama
KLIBOR FUTURES
On a Friday-to-Friday basis, spot month August 2017, September 2017, October 2017 and December 2017 remained pegged at 96.54, 96.53, 96.51 and 96.48, respectively.
The underlying three-month Klibor on the cash market was unchanged at 3.43%. – Bernama