Bursa Malaysia to likely remain firm
KUALA LUMPUR: Trading on Bursa Malaysia is likely to remain firm,on the back of good news such as the higher economic growth forecast by the International Monetary Fund ( IMF), increased foreign equity inflows, a steadier ringgit and firmer crude oil prices.
Affin Hwang Investment Bank vice- president/ head of Retail Research, Datuk Dr Nazri Khan Adam Khan said the good news provided fresh catalysts and boosted investor confidence in the local bourse.
“Hence, the FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to stay firm at around the 1,780-level,” he told Bernama.
Nazri Khan said the IMF’s upgrade of Malaysia’s 2017 gross domestic product (GDP) forecast to 4.8 per cent from 4.5 per cent on Monday, had lifted the ringgit to surge as the strongest appreciated currency among ASEAN countries.
“As of today, we also saw a RM11.2 billion inflow into the local equity market, which is also a good catalyst towards improving the sentiment of investors,” he said.
Meanwhile, Nazri Khan also noted that technology- related and the Ace Market stocks might lend support to the local bourse, especially after Thursday’s announcement of five Malaysian companies being on the list of Forbes 2017 ‘ Best Under A Billion’.
“The emphasis on the digital economy recently will also propel the tech- related stocks,” he added.
On a Friday-to-Friday basis, the FBM KLCI was higher at the beginning of the week as the revised IMF GDP growth projection lifted sentiment on Bursa Malaysia.
The key index retreated thereafter on Friday, mainly due to profit-taking from the recent gains, coupled with the lack of fresh catalysts after the US Federal Reserve voted to maintain the interest rate at between 1.0-1.25 per cent on Wednesday.
Onaweeklybasis,thebenchmark FTSE Bursa Malaysia KLCI (FBM KLCI) gained 8.08 points to 1,767.08 from 1,759.00 last week.
The FBM Emas Index surged 51.62 points to 12,591.63, the FBMT 100 Index rose 52.72 points to 12,232.61 and the FBM Emas Shariah Index was up 9.79 points to 12,729.68.
The FBM 70 jumped 57.58 points to 14,973.47, but the FBM Ace lost 138.84 points to 6,616.64.
On a sectoral basis, the Plantation Index was 31.56 points lower at 7,839.79 and the Industrial Index eased 1.13 points to 3,274.01.
The Finance Index, however, advanced 155.24 points to 16,826.38. Total turnover fell to 7.87 billion units worth RM9.03 billion from 9.96 billion units worth RM10.01 billion last week.
Main Market volume declined to 5.08 billion shares valued at RM8.45 billion versus 6.49 billion shares valued at RM9.26 billion last Friday.
Warrants volume also shed to 580.48 million units valued at RM63.99 million from 742.7 million units worth RM69.76 million.
The ACE Market turnover narrowed to 2.17 billion shares worth RM506.05 million against 2.68 billion shares valued at RM668.58 million. — Bernama