Firmer trend forecast

BURSA Malaysia is expected to be on an uptrend this week, driven by the steady ringgit as well as the “feel good” sentiment in the external markets, with the release of strong economic data in the United States last week.

Affin Hwang Investment Bank vice-president/head of retail research Datuk Dr Nazri Khan Adam Khan said the steady ringgit against the US dollar was a good sign for the local stock market as it reflected improved foreign fund inflows.

“The environment outside Malaysia is also positive with the strong performance of regional bourses, upbeat US private sector job figures and signs of improvement in the global economy. All of these factors will translate into higher optimism in corporate earnings, thus providing a boost for Bursa Malaysia,” he said.

On the local front, Nazri Khan said, the merger plan between RHB Bank Bhd and AMMB Holdings Bhd would be a major catalyst for the banking sector on Bursa Malaysia this week and likely push the FBM KLCI towards the 1,800 level.

Meanwhile, Alliance-DBS Research said local equities were in a consolidation mode in May. However, given the improving fundamentals and receding external geopolitical risks, it sees this as an opportunity for investors to accumulate on weakness.

The FBM KLCI gained 4.65 points to 1,776.95 last week. – Bernama