Mild market recovery expected

BURSA Malaysia is likely to stage a mild recovery this week with the key index inching towards the 1,772-level on bargain hunting, according to an analyst.

The Malaysian Association of Technical Analysts president, Nik Ihsan Raja Abdullah, said the local market, which experienced a sell-off in the week just ended, would turn positive on the back of the expected recovery in oil prices that would soften the impact of capital flight.

“The oil market is recovering quite well. In the last two weeks, it traded around US$55 per barrel and is now trading at US$57/ US$58 per barrel... that should be a signal,” he told Bernama. The recent sell-offs on the local bourse were triggered in part by external developments.

Bursa Malaysia was in negative territory for the last nine consecutive sessions, with the FBM KLCI falling a cumulative 30.75 points to end the third quarter of 2017, as market sentiment in the Asian region was affected by fresh tensions between North Korea and the US as well as, the comments by made by Fed chairman Janet Yellen, on a possible rate increase.

On a weekly basis, the benchmark FTSE Bursa Malaysia KLCI fell 15.46 points to 1,755.58 from 1,771.04 on Thursday.

The FBM Emas Index declined 192.39 points to 12,531.29 and the FBMT 100 Index decreased 198.69 points to 12,189.25.

The FBM Emas Syariah Index retreated 130.61 points to 12,797.37, the FBM 70 slid KUALA LUMPUR

The three-month Kuala Lumpur Interbank Offered Rate (KLIBOR) futures contract on Bursa Malaysia Derivatives is likely to remain quiet this week in the absence of market catalysts.

For the week just-ended, the market was untraded with open interest remaining at WEEKLY FBM KLCI 189.75 points to 15,057.13 and the FBM Ace eased 123.74 points to 6,568.86.

The Finance Index went down 389.11 points to 16,439.87, the Industrial Index fell 41.34 points to 3,201.21, and the Plantation Index declined 98.7 points to 7,871.96.

Total turnover increased to 12.69 billion units valued at RM11.57bil from 10.40 billion units valued at RM8.32bil. Main Market volume rose to 9.65 billion shares valued at RM11.05bil from 7.71 billion shares worth RM7.88bil.

Warrants volume expanded to 802.06 million units worth RM79.56mil from 692 million units worth RM74.14mil. The Ace Market rose to 2.22 billion units valued at RM442.05mil from 1.97 billion shares valued at RM362.26mil. – Bernama

KLIBOR FUTURES

nil.

On a Friday-to-Thursday basis, October 2017, November 2017, December 2017 and March 2018 stood at 96.53, 96.52, 96.50 and 96.50, respectively.

The underlying three-month KLIBOR on the cash market remained at 3.43% on Friday. – Bernama