Market may breach 1,800 next week on improved sentiment
US-China talks may lead to favourable solution while mild correction provides room for index to trade higher, says analyst
THE FTSE Bursa Malaysia KLCI (FBM KLCI) may test the 1,800-point level again next week on improved market sentiment.
M&A Securities Sdn Bhd chief dealing officer R. Sundararajah said the market had yet to react to Bank Negara Malaysia’s announcement yesterday that the economy grew 4.5 per cent in the second quarter, compared with 5.8 per cent in the same period last year.
“However, sentiment (yesterday) was boosted by news on the possible revival of trade talks between the United States and China later this month and stronger corporate earnings by some companies in the US equity market,” he said.
The key index finished the week on a positive note, reversing Thursday’s loss. It rose 0.35 per cent to 1,783.47 from 1,777.27 the previous day.
The rise was in line with regional markets on trade optimism.
Malaysian Association of Technical Analysts adviser Nazarry Rosli said the market sentiment was expected to be better next week as the trade talks between US and China could lead to a positive and favourable solution. “The index may test the 1,800 level again next week. The mild correction this week provides room for the index to trade higher,” he said.
Among the 30 key stocks, Dialog Group Bhd led with a oneday return of 2.26 per cent, followed by MISC Group Bhd and Telekom Malaysia Bhd. Seven fell into the red yesterday, led by Petronas Chemicals Group Bhd.
Sector wise, indices such as construction, plantation, industrial and property ended in positive territory. Four indices, including finance and technology, finished in the red.