Bullish trading forecast after positive GDP data

BURSA Malaysia is expected to trade firmer this week, taking the cue from the encouraging 2017 gross domestic product ( GDP) growth data released last Wednesday.

Affin Hwang Investment Bank vice-president/head of retail research, Datuk Dr Nazri Khan Adam Khan said the 5.9% GDP growth, deemed as positive and taking on the good momentum from last year, would improve investors’ appetite on the local bourse.

”We can see that the volume has gone up too, which means we have the momentum to trend higher next (this) week.

The FBM KLCI is likely to touch the 1,860-point level, he said.

Nazri said that the ringgit is also expected to be higher this week amid a stronger current-account surplus of RM12.9 billion in the fourth quarter of last year.

”The rebound in the ringgit to currently quote at 3.8-level, recovery in oil prices as well as positive sentiment on global equity markets, will boost the FBM KLCI’s performance and increase investors’ confidence,” he added.

Meanwhile, Maybank Investment Bank in a note said in the first half of 2018 Market Outlook it expects fiscal stimulus before the 14th general election and Bank Negara Malaysia’s Overnight Policy Rate increase to be the two main thematics driving investment.

”But for the longer term play, the focus is on multi-year order book replenishment in infrastructure construction, tourism and Look East Malaysia.”

Last week, on a Thursday-toFriday basis, the FBM KLCI finished 18.46 points higher at 1,838.28. – Bernama