Bursa Malaysia to hover between 1,420 and 1,450

KUALA LUMPUR: Bursa Malaysia is likely to hover at the 1,420 to 1,450 level, supported by expected rotational play among the rubber glove and logistics counters.

Rakuten Trade Sdn Bhd vicepresident of research Vincent Lau said with Covid-19 vaccine developments remained in doubt, rubber glove stocks were expected to stay in the spotlight next week.

GDex’s active trading on Friday was also expected to have a spillover effect, he said.

“However, external factors, especially the intensified tensions between the US and China, would continue to affect investors’ sentiment,” he told Bernama.

Asked if the Hari Raya y Aidilfitri holiday-shortened day-shortened week ahead ahe would have any implication on investors’ buying interest, Lau dismissed the idea. He said traders, who were likely to stay at home due to the Conditional Movement Control Order (CMCO), would continue investing via the online platform.

Bursa Malaysia Bhd and its subsidiaries will be closed on Monday and Tuesday in lieu of the Hari Raya Aidilfitri celebration. Trading will resume on Wednesday, May 27.

Throughout the week, the market traded mostly higher, with trading volume touching an all-time high of 11.21 billion units, supported by an overwhelming buying interest from retail participants amid the lower Overnight Policy Rate (OPR) of two per cent.

The FTSE Bursa Malaysia KLCI ( FBM KLCI) hit a two- month high of 1,452.11 on Thursday, as rubber glove and energy counters continued to gain traction amid scepticism over Covid-19 vaccine developments and firmer crude oil prices.

However, the key index succumbed to profit-taking on Friday, ahead of Hari Raya Aidilfitri, as it had been rising about five per cent since the start of the previous week.

On a Friday-to-Friday basis, the index rose 33.32 points to end at 1,436.76.

On the scoreboard, the FBM Emas Index strengthened 309.06 points to 10,177.12, the FBMT 100 Index expanded 309.21 points to 10,025.32 and the FBM Emas Shariah Index soared 486.29 points to 11,620.34.

The FBM 70 surged 703.75 points to 12,695.16 but the FBM ACE Index eased 2.31 points to 5,387.79.

Sector- wise, the Industrial Products and Services Index eked out a gain of 3.51 points to 124.39, the Plantation Index was 525.69 points higher at 6722.85, and the Financial Services Index increased 113.52 points to 12,380.73.

For the week just ended, weekly turnover surged to 41.29 billion units worth RM21.53 billion from 32.22 billion units worth RM16.74 billion in the previous week.

Main Market volume widened to 30.09 billion shares valued at RM18.77 billion from 18.74 billion shares worth RM13.12 billion previously. — Bernama