Bursa Malaysia likely to trend higher

KUALA LUMPUR: Buying momentum on Bursa Malaysia is expected to continue, with the benchmark index FTSE Bursa Malaysia KLCI (FBM KLCI) to move above the 1,500psychological level throughout the week amidst positive market sentiment.

Inter-Pacific Asset Management Sdn Bhd executive director and fund manager Datuk Nazri Khan Adam Khan said the local bourse is making a comeback as it has been moving below the 1,500psychological mark for some time.

He said sentiment in the market has recovered following the easing of the US inflation rate, which helped ease worries about global economic growth.

Additionally, the better-thanexpected gross domestic product in the second quarter (2Q) of 2022 which saw the economy grow by 8.9 per cent – higher than the consensus expectation of between 5.5 and 6.5 per cent – also contributed to the positive vibe in the market.

“The strong performance is a signal to investors that we will be able to sustain the recovery.

“As long the FBMKLCI stays above 1,500-level, we will be strong. I expect the market will hold steady and the next level will be 1,520 (for support) and 1,530 (resistance),” he told Bernama. Nazri Khan expected inflation to retreat starting next quarter.

At Friday’s close, the FBM KLCI added 0.63 of-a-point to end the week at 1,506.19, compared with Thursday’s close of 1,505.56, as gains were limited by mild profit-taking.

On a weekly basis, the benchmark index expanded 9.32 points to 1,501.55, from 1,492.23 at the end of the previous week, mainly influenced by external factors.

On the index board, the FBM Emas Index gained 23.73 points to 10,683.18, the FBMT 100 Index increased 21.93 points to 10,427.61, the FBM Emas Syariah Index bagged 39.99 points to 10,790.33, the FBM 70 picked up 14.27 points to 12,761.39, and the FBM ACE improved 62.71 points to 4,936.74.

Sector-wise, the Financial Services Index soared 197.29 points to 16,827.61, the Plantation Index expanded 71.54 points to 7,196.81, and the Industrial Products and Services Index ticked up 0.06 of-a-point to 184.04, while the Energy Index added 19.91 points to 663.12.

Weekly turnover reduced to 11.51 billion units worth RM7.86 billion from 12.41 billion units worth RM7.96 billion in the previous week.