Up­trend to con­tinue

The Sun (Malaysia) - - MEDIA & MARKETING -

BURSA Malaysia is likely to con­tinue its up­trend this week, fu­elled by the pos­i­tive im­pact of the 2017 Bud­get tabed in Par­lia­ment on Fri­day.

How­ever, gains will be mod­est due to un­cer­tainty in the global mar­ket, a dealer said.

He said the RM3 bil­lion al­lo­ca­tion for small- and mid-cap­i­talised com­pa­nies would set a new tone for gov­ern­ment-linked in­vest­ment com­pa­nies as it would help them to di­ver­sify their in­vest­ment port­fo­lios.

“This al­lo­ca­tion would spur in­vestor buy­ing in­ter­est in small and penny stocks,” he said.

The 2017 Bud­get was good for the mar­ket as it could help boost econ­omy growth and cor­po­rate earn­ings, the dealer said.

“We see the sup­port level for FBM KLCI to be around 1,650-1,680 points next (this) week,” he said.

How­ever, the un­der­ly­ing mar­ket sen­ti­ment re­mains cau­tious due to un­cer­tainty over the US Fed­eral Re­serve’s in­ter­est rate hike and crude oil price volatil­ity.

For the week just ended, the FBM KLCI gained 11.01 points to 1,669.98. – Ber­nama

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