Bursa Malaysia to trade in tandem with regional markets next week

  • AseanPlus News
  • Saturday, 04 Jul 2020

KUALA LUMPUR, July 4 (Bernama): Bursa Malaysia is likely to trade in line with regional bourses next week as markets may extend their rally on positive news about potential Covid-19 vaccine development, said an analyst.

AxiCorp global chief market strategist Stephen Innes said the economic impact of the movement control order (MCO) restrictions was severe, but crucially, the virus has been contained.

"Despite positive developments in recent weeks, the economic cost of the MCO was substantial.

"Fortunately, the fiscal and monetary response was equally extraordinary,” Innes told Bernama.

He said the risk tone was much enabled by a combination of Covid-19 vaccine optimism in addition to better-than-expected data globally.

As oil prices continue to recover gradually from now on, Innes said there was continued policy support from Bank Negara Malaysia as Malaysia still has one of the highest real policy rates in the region at nearly 5.0 per cent.

For the past week, the key index, FTSE Bursa Malaysia KLCI (FBM KLCI) was supported by strong

buying across the board in tandem with substantial gains in regional markets.

The FBM KLCI rallied to almost reaching its intra-day high at closing from Monday to Thursday and achieved it on the last trading of the week, adding 16.37 points to 1,552.65.

On a Friday-to-Friday basis, the index rose 64.51 points to end at 1,552.65.

On the scoreboard, the FBM Emas Index increased 449.87 points to 10,908.03, the FBMT 100 Index gained 444.76 points to 10,760.57, while the FBM Emas Shariah Index added 645.07 points to 12,482.38.

The FBM 70 expanded 541.55 points to 13,327.7 and the FBM ACE Index climbed 668.41 points to 6,740.81.

Sector-wise, the Industrial Products and Services Index edged up 5.87 points to 140.17, the Plantation Index increased 153.76 points to 6,813.35, and the Financial Services Index put on 255.3 points to 13,078.05.

Weekly turnover increased to 31.31 billion units worth RM18.23 billion from 29.69 billion units worth RM13.57 billion in the previous week.

Main Market volume fell to 14.83 billion shares worth RM14.39 billion from 15.93 billion shares worth RM11.22 billion previously.

Warrants turnover widened to 2.49 billion units worth RM714.48 million from 1.83 billion units worth RM386.93 million the week before.

The ACE Market volume went up to 13.98 billion shares worth RM3.12 billion from 11.93 billion shares worth RM2.36 billion previously. - Bernama

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