Uptrend to continue
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