Market likely to trend higher

BURSA Malaysia is expected to trend higher this week, with the benchmark index likely to reach 1,830, mainly driven by subsiding uncertainties surrounding the US-China tariff conflict.

Hermana Capital Bhd chief executive officer/chief investment officer Datuk Dr Nazri Khan Adam Khan said sentiment towards emerging market assets had started to improve as investors viewed the latest trade tariffs imposed by the US and China as likely to inflict less economic damage than many had feared.

“We are seeing more foreign funds coming back into Malaysia, and last week, it amounted close to RM200mil,” he told Bernama.

Furthermore, he said the country’s economic fundamentals were strong with gross domestic product projected to grow at five per cent this year, and on top of that, the local stock market was outperforming its peers in Thailand, Singapore and Indonesia.

On the technical front, Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said the benchmark FBM KLCI had surpassed its previous resistance level of 1,805 and the next resistance level is 1,839.

This week, he said the market would scrutinise the message from the Federal Reserve (Fed) following its upcoming Federal Open Market Committee meeting on Sept 25-26.

Mohd Afzanizam said the US economy is on solid footing with average hourly earnings growing 2.9% year-on-year in August, surpassing its 2.2% average since 2010.

“As such, wages are rising at a rapid pace. So we could see the Fed become more hawkish in their accompanying statement. If that happens, that could rattle the markets,” he added.

On a Friday-to-Friday basis, the benchmark FBM KLCI settled 6.88 points better at 1,810.64. The FBM Emas Index was up 42.96

FBM KLCI FUTURES

KUALA LUMPUR

The FTSE Bursa Malaysia KLCI (FBM KLCI) futures contract is expected to trend higher this week, tracking the anticipated better performance of the underlying cash market.

Hermana Capital Bhd chief executive officer/chief investment officer Datuk Dr Nazri Khan Adam Khan said sentiment towards emerging market assets had started to improve, driven by subsiding uncertainties surrounding the US-China tariff battle.

He said investors’ view was that the latest trade tariffs imposed by the US and China would likely inflict less economic damage

GOLD FUTURES

KUALA LUMPUR

The gold futures contract on Bursa Malaysia Derivatives is expected to trade in a cautious mode this week amid the ongoing US-China trade conflict, said a dealer.

Phillip Futures Sdn Bhd Derivative Dealer Tee Guy Eon said notable events would be the release of the US Federal Open Market Committee meeting minutes and Malaysia's Inflation Report this week that may set the market direction.

“In the week ahead, the local bullion will mainly track the sentiment of its US counterpart, the New York Commodity Exchange’s overnight gold futures market performance,

MONEY MARKET

KUALA LUMPUR

The ringgit is likely to trade at the current level of 4.1280 with an upside bias against the US dollar this week as market direction would rely on the release of economic data and currency movements across emerging markets, said dealers.

FXTM currency strategy and market research global head, Jameel Ahmad said the notable events would be the release of US Federal Open Market Committee meeting minutes and Malaysia's Inflation Report this week.

“There is a lower volume of tier-one economic data reports for this week. This increases the likelihood that the direction of financial market movements will continue to be dictated by external drivers. Trade war headlines and political risk will be the two likely culprits of volatility,” he told Bernama.

Meanwhile, emerging markets would be hoping that the news late last week that China had welcomed the United States’ invi- WEEKLY FBM KLCI points to 12,607.96 and the FBMT100 Index gained 36.35 points to 12,423.33.

The FBM 70 added 2.39 points to 14,846.96, the FBM Emas Shariah Index increased 69.14 points to 12,735.94, while the FBM Ace improved 27.2 points to 5,204.44.

On a sectoral basis, the Finance Index climbed 45.22 points to 17,968.66, the Plantation Index was up 0.33 of-a-point to 7,552.19, while the Industrial Index rose 26.41 points to 3,230.77.

Weekly turnover increased to 7.8 billion units worth RM9.5bil from 7.29 billion units worth RM7.87bil.

Main market volume declined to 5.27 billion shares valued at RM8.89bil from 5.66 billion shares valued at RM8.99bil.

Warrants turnover shrank to 1.49 billion units worth RM383.58mil from 2.98 billion units worth RM872.93mil.

The ACE market volume decreased to 1.03 billion shares worth RM229.39mil from 1.73 billion shares worth RM238.88mil.

The market was closed last Monday in lieu of the Malaysia Day public holiday which fell on Sunday, Sept 16. — Bernama than many had feared.

On a Friday-to-Friday basis, September 2018 gained five points to 1,803, October 2018 added nine points to 1,803.5.

December 2018 rose 7.50 points to 1,797.50 and March 2019 climbed 7.50 points to 1,795.00

Turnover for the week declined to 28,706 lots from 29,384 lots recorded last week, while open interest widened to 31,722 contracts from 30,627 contracts.

The benchmark FBM KLCI settled 6.88 points better at 1,810.64 compared with 1,803.76 last Friday. — Bernama which will also be affected by the developments in the US-Sino trade dispute,” he told Bernama.

On a Friday-to-Friday basis, September 2018, October 2018 and November 2018 each rose four ticks to RM161.40 a gramme respectively, while December 2018 improved one tick to RM161.45 a gramme.

Weekly turnover eased to four lots worth RM64,500 against five lots worth RM64,480, previously. Open interest rose to 28 contracts from 25 contracts. Bursa Malaysia and its derivatives were closed on Monday in lieu of the Malaysia Day public holiday which fell on Sunday, Sept 16. — Bernama tation for a new rounds of talks would provide the needed catalyst to inspire some risk appetite back into investor’s portfolios, said Jameel.

“If positive headlines arise from these trade talks, it increases the probability that investors will be tempted back into emerging markets, meaning buying demand for the Malaysian ringgit and its regional peers would improve,” he added.

On a Friday-to-Friday basis, the local note appreciated to 4.1280/1320 against the US dollar from 4.1370/1400.

The ringgit was mostly lower against other major currencies.

It increased against the Japanese yen to 3.6609/6654 from 3.6997/6037 previously, and was lower against the euro at 4.8607/8679 from 4.8390/8446.

It weakened against the Singapore dollar to 3.0271/0304 from 3.0208/0241 and declined against the British pound to 5.4428/4501 from 5.4282/4338. — Bernama