Bursa likely to trend higher on foreign funds
KUALA LUMPUR: Bursa Malaysia is likely to trend higher this week, recovering from profit-taking last Friday to ride on a better risk appetite especially from foreign buyers.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng reckoned market sentiment to remain positive with the FBM KLCI likely to break the 1,500 level again soon.
He anticipated the benchmark index to trend within the 1,500 and 1,530 level, with demand to be supported by buying from foreign investors.
“They have been selling over the past few weeks, but came back last Thursday with net buying of Rm300mil.
“We advise investors to focus on large cap stocks such as banks and telcos, and domestically-driven stocks including construction and retail real estate investment trusts,” he was quoted by Bernama as saying.
Another dealer said market players would be closely monitoring the development of the Cabinet line-up led by newly-appointed Prime Minister Datuk Seri Anwar Ibrahim as well as the fate of Budget 2023.
For the week just ended, the FBM KLCI moved in volatile trading as a result of the 15th General Election (GE15).
The market rebounded strongly last Thursday following the clarity in the local political scene after the Yang di-pertuan Agong Al-sultan Abdullah Ri’ayatuddin Al-mustafa Billah Shah consented to the appointment of the Pakatan Harapan leader and Tambun MP as Malaysia’s 10th Prime Minister, coupled with positive external developments that fuel investors’ risk appetite.
The FBM KLCI rallied to a near threemonth high of 1,501.88 last Thursday, before retreating the next day due to profit-taking.
On Friday-to-thursday basis, the key index rose 37.22 points to 1,486.54 last Friday, from 1,449.32 on last Thursday. The market was closed last Friday to enable the people to exercise their right to vote in GE15.
On the index board, the FBM Emas Index increased 297.55 points to 10,576.79, the FBMT 100 Index garnered 288.88 points to 10,299.69, the FBM 70 soared 478.85 points to 12,638.36, the FBM Emas Syariah Index expanded 288.85 points to 10,687.62, while the FBM ACE chalked up 276.72 points to 5,191.64.