Strong Nasdaq to boost tech stocks
BURSA Malaysia is expected to trend higher this week, riding on the recovery in the overall market sentiment, a dealer said.
“It is somehow tricky to determine the market tone next week (this week). For the short trading week just ended, it was driven purely by sentiment in the market.
“However, stronger crude oil prices coupled with the strong US stock market’s performance, including the Nasdaq, would be factors to boost the market next week,” the Malaysian Association of technical analysts president, Nik Ihsan Raja Abdullah told Bernama.
He also noted that local technology stocks would be in the spotlight next week, benefiting from trade tensions and the strong Nasdaq performance.
“Hence, I believe the FBM KLCI would linger between 1,790 and 1,820,” Nik Ihsan said.
Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said markets were mostly positive last Friday, taking cue from the overnight performance of US equities.
He also said the US consumer price index, which grew 2.7% year-on-year in August after a 2.9% increase in the previous month, suggests the rate hike in the US was going to be gradual.
“Meanwhile, the Turkish cental bank raised its policy rate to 24%, indicating the central bank had independence in deciding on monetary policy. Perhaps, these are the factors that will support the markets,” he added.
On a Friday-to-Friday basis, the benchmark FTSE Bursa Malaysia KLCI settled 4.59 points better at 1,803.76.
The FBM Emas Index was up 2.57 points to 12,565.0 and the FBMT100 Index gained 5.42 points to 12,386.98.
The FBM 70 lost 92.25 points for 14,844.57, WEEKLY FBM KLCI the FBM Emas Shariah Index decreased 16.73 points to 12,666.80.
The FBM Ace improved 30.52 points to 5,177.24.
On a sectoral basis, the Finance Index climbed 127.33 points to 17,923.44, the Plantation Index was up 47.03 points to 7,551.86, while the Industrial Index eased 17.19 point to 3,204.36.
Weekly turnover slipped to 7.29 billion units worth RM7.87bil from 11.68 billion units worth RM10.15bil.
Main Market volume declined to 5.66 billion shares valued at RM8.99bil from previous Friday’s 6.81 billion shares worth RM9.05bil.
Warrants turnover improved to 2.98 billion units worth RM872.93mil from 1.8 billion units worth RM488.26mil.
The Ace Market volume narrowed to 1.73 billion shares worth RM238.88mil from 2.03 billion shares valued at RM360.64mil. The market was closed last Monday and Tuesday due to public holidays.
It will be closed again on Sept 17 (Monday) for the Malaysia Day Holiday. – Bernama The FBM KLCI futures contract is expected to trade on a positive note this week with overall market sentiment improving, thanks to fresh optimism over US-China trade and Turkey’s move to increase interest rates.
The market was closed last Monday and Tuesday due to public holidays.
It will be closed again today for the Malaysia Day holiday.
On a Friday-to-Friday basis, September KUALA LUMPUR
The gold futures contract on Bursa Malaysia Derivatives is expected to trade on cautious mode this week due to the ongoing US-China trade war and the US interest rate outlook, said a dealer.
On a Friday-to-Friday basis, September 2018 jumped 13 ticks to RM161.20 a gramme, while October 2018 gained six ticks to RM161.20 a gramme.
Meanwhile, November 2018 and KUALA LUMPUR
The ringgit is likely to trade at the current level of between 4.130 and 4.150 against the US dollar this week with market sentiment poised to remain driven by global trade developments and movements across emerging markets, said dealers.
OANDA head of trading in Asia Pacific Stephen Innes said the market would be cautious given that much of the risk revival hinged on possible US-China trade talks aimed at de-escalating the trade friction between the two economies.
“On the positive front, the placid US Consumer Price Index does take a bit of pressure off local currencies as the US dollar bulls will not be so aggressive. But overall, I do not expect the reprieve to be lasting. BONUS / RIGHTS ISSUES 2018 gained seven points to 1,798.0, October 2018 added 8.5 points at 1,794.5, December 2018 rose eight points to 1,790.0 and March 2019 climbed 12.5 points to 1,787.5.
Turnover for the week dipped to 29,384 lots from 33,488 lots, while open interest widened to 30,627 contracts from 27,437 contracts.
On a Friday-to-Friday basis too, the benchmark FBM KLCI settled 4.59 points better at 1,803.76. – Bernama
GOLD FUTURES
December 2018 declined three ticks each to RM161.20 and RM161.40 a gramme respectively.
Weekly turnover eased to five lots worth RM64,480 against seven lots worth RM112,155 previously.
Open interest remained at 25 contracts. Bursa Malaysia and its derivatives were closed last Monday and Tuesday respectively for the King’s birthday as well as Awal Muharram. – Bernama
MONEY MARKET
The ringgit traded rangebound in the holiday-shortened week amid a quiet market.
The market was closed last Monday and Tuesday for King’s birthday and Awal Muharram respectively. The market will be closed again today for Malaysia Day.
On a Friday-to-Friday basis, the local note appreciated to 4.1370/1400 against the US dollar from 4.1435/1465.
The ringgit was mostly lower against other major currencies. It increased against the yen at 3.6997/6037 from 3.7406/7444 previously, but was lower against the euro at 4.8390/8446 from 4.8210/8257. It weakened against the Singapore dollar to 3.0208/0241 from 3.0139/0163 and declined against the pound to 5.4282/4338 from 5.3725/3768. – Bernama