KUALA LUMPUR, March 18 — Bursa Malaysia is likely to be more on the upside next week, supported by factors, including the less hawkish US Federal Reserve (Fed) tone, a slight boost in global risk-taking sentiment, stronger commodity prices, and strengthening of the ringgit, an analyst said.
He said the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) was expected to move beyond the 1,750-level.
“FBMKLCI should maintain its bullishness into higher territory as equity bulls take relief from the Dutch election outcome and remained largely unfazed by imminent hikes in the Fed interest rates,” he said.
On a similar note, Affin Hwang Investment Bank Vice-President and Head of Retail Research Datuk Dr Nazri Khan Adam Khan said the investment bank believed there would be more upside next week as investors digested monetary policy decisions undertaken by the Bank of Japan, the People’s Bank of China and the Fed.
“While the People’s Bank of China raised its short-term interest rate by 10 basis point, the Bank of Japan held monetary policy steady and maintained a positive view on the economy, suggesting a stronger regional trade in the near future.
“On the domestic front, the local market should get a positive catalyst from International Trade and Industry Minister Datuk Seri Mustapa Mohamed’s forecast that Malaysia’s e-commerce would surpass the 11 per cent compound annual growth rate by 2020, driven by small and medium enterprises,” he told Bernama.
The country’s e-commerce industry is expected to be worth RM114 billion by 2020 or 6.4 per cent of gross domestic product (GDP) from RM68 billion, representing 5.9 per cent of GDP in 2015.
On a week-to-week basis, the FBM KLCI rose 27.62 points to 1,745.20 from 1,717.58 last Friday.
Throughout the week, the index was mostly higher, influenced mainly by Fed’s decision to raise its interest rate for the second time since last December.
Yesterday, the volume on the local bourse touched an all-time high, riding on improvement in the US economy, which boosted investor confidence into buying more assets in emerging countries, including in Malaysia. It was reported that since January this year, more than RM2 billion in funds flowed into the country.
The FBM Emas Index jumped 205.72 points to 12,341.34, the FBMT 100 Index gained 197.93 points to 11,996.30 and the FBM Emas Shariah Index improved 167.55 points to 12,727.23.
On a sectoral basis, the Finance Index soared 339.92 points to 15,739.99, the Industrial Index rose 20.57 points to 3,263.81, while the Plantation Index was 80.42 points higher at 8,161.61.
Weekly turnover expanded to 19.39 billion units worth RM17.22 billion from 16.23 billion units worth RM13.66 billion last week.
Main Market volume widened to 15.10 billion shares valued at RM16.53 billion versus 10.3 billion shares valued at RM13.04 billion. Warrant turnover weakened to 1.22 billion units worth RM148.94 million against 1.25 billion units worth RM155.47 million.
The ACE Market increased to 3 billion worth RM523.39 million from 2.67 billion shares worth RM459.75 million. — Bernama