Bullish trading likely

BURSA Malaysia is expected to trend higher this week, with the benchmark index likely to reach 1,830 points, driven mainly by subsiding uncertainties surrounding the US-China tariff conflict.

Hermana Capital Bhd CEO/CIO Datuk Dr Nazri Khan Adam Khan said sentiment towards emerging market assets has started to improve as investors view the latest trade tariffs imposed by the US and China as likely to inflict less economic damage than feared.

“We are seeing more foreign funds coming back into Malaysia, and last week, it amounted close to RM200 million,” he told Bernama.

Furthermore, he said, the country’s economic fundamentals are strong with gross domestic product projected to grow at 5% this year. On top of that, the local stock market is outperforming its peers in Thailand, Singapore and Indonesia.

On the technical front, Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said the FBM KLCI has surpassed its previous resistance level of 1,805 and the next resistance level is 1,839. “Therefore, we should see FBM KLCI linger at around these points.”

This week, he said, the market will scrutinise the message from the Federal Reserve following its upcoming open market committee meeting tomorrow and Wednesday.

On a Friday-to-Friday basis, the FBM KLCI settled 6.88 points better at 1,810.64.