Bullish trading ahead

BURSA Malaysia is expected to continue its positive momentum moving into 2018 this week, boosted by bullish local and regional catalysts, including the recovery of the economy.

After finishing the last trading day of 2017 on a healthy note, Affin Hwang Investment Bank vicepresident and head of retail research Datuk Dr Nazri Khan Adam Khan said, the FBM KLCI is expected to continue its uptrend moving into 2018.

“For the first time in four years, the key index ended on a year-end rally sentiment, rising about 9.0 per cent year-on-year and about 4.0 per cent compared to November,” he told Bernama.

Towards the year-end, he said, the FBM KLCI was supported by a strong commodity performance, including, copper, oil and gold, which recorded record highs.

“With the recovery in the domestic economy and strengthening of the ringgit, Bursa Malaysia is expected to remain in upward momentum for at least the first quarter of next (this) year,” he added.

Nazri Khan said for this week, he expects the key index to move between a range of 1,780 and retest the September 2017 high of 1,800 points.

During the last trading week of last year, the market’s performance was supported by the rally in commodities, namely oil and copper prices, amid thin trade ahead of the New Year’s weekend.

On a Friday-to-Friday comparison, the FBM KLCI gained 36.57 points to 1,796.81, with the market being mostly influenced by window dressing and profit-taking ahead of the long New Year holiday weekend.