Bursa M’sia to trend higher next week on improving market sentiment

KUALA LUMPUR: Bursa Malaysia is expected to trend higher next week, riding on the recovery in the overall market sentiment, a dealer said.

“It is somehow tricky to determine the market tone next week. For the short trading week just ended, it was driven purely by sentiment in the market.

“However, stronger crude oil prices coupled with the strong US stock market's performance, including the Nasdaq, would be factors to boost the market next week,” the Malaysian Association of Technical Analysts President, Nik Ihsan Raja Abdullah told Bernama.

Benchmark Brent Crude rose 0.17% to US$78.31 per barrel.

He also noted that local technology stocks would be in the spotlight next week, benefiting from trade tensions and the strong Nasdaq performance.

“Hence, I believe the composite index would linger between 1,790 and 1,820,” Nik Ihsan said.

Bank Islam Chief Economist Dr Mohd Afzanizam Abdul Rashid said markets were mostly positive on Friday, taking cue from the overnight performance of US equities.

He also said the US consumer price index, which grew 2.7% year-on-year in August after a 2.9% increase in the previous month, suggests the rate hike in the US was going to be gradual.

“Meanwhile, the Turkish central bank raised its policy rate to 24%, indicating the central bank had independence in deciding on monetary policy. Perhaps, these are the factors that will support the markets,” he added.

On a Friday-to-Friday basis, the benchmark FTSE Bursa Malaysia KLCI settled 4.59 points better at 1,803.76.

The FBM Emas Index was up 2.57 points to 12,565.0 and the FBMT100 Index gained 5.42 points to 12,386.98.

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The FBM 70 lost 92.25 points for 14,844.57, the FBM Emas Shariah Index decreased 16.73 points to 12,666.80, while the FBM Ace improved 30.52 points to 5,177.24.

On a sectoral basis, the Finance Index climbed 127.33 points to 17,923.44, the Plantation Index was up 47.03 points to 7,551.86, while the Industrial Index eased 17.19 point to 3,204.36.

Weekly turnover slipped to 7.29 billion units worth RM7.87 billion from 11.68 billion units worth RM10.15 billion.

Main market volume declined to 5.66 billion shares valued at RM8.99 billion from last Friday's 6.81 billion shares worth RM9.05 billion.

Warrants turnover improved to 2.98 billion units worth RM872.93 million from 1.8 billion units worth RM488.26 million.

The ACE market volume narrowed to 1.73 billion shares worth RM238.88 million from 2.03 billion shares valued at RM360.64 million.

The market was closed on Monday and Tuesday due to public holidays.

It will be closed again on Sept 17 (Monday) for the Malaysia Day Holiday.

Phillip Futures Sdn Bhd Derivative Dealer Ong Su Ling said the US Federal Reserve will hold its two-day meeting beginning Sept 26, with an expectation of raising interest rates by a quarter of a percentage point.

On a Friday-to-Friday basis, September 2018 jumped 13 ticks to RM161.20 a gramme, while October 2018 gained six ticks to RM161.20 a gramme.

Meanwhile, November 2018 and December 2018 declined three ticks each to RM161.20 and RM161.40 a gramme respectively.

Weekly turnover eased to five lots worth RM64,480 against seven lots worth RM112,155 previously.

Open interest remained at 25 contracts.

Bursa Malaysia and its derivatives were closed on Monday and Tuesday respectively for the King's birthday as well as Awal Muharram.

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The market will be closed again on Sept 17 (Monday) for Malaysia Day. — Bernama