Bursa Malaysia likely to continue on recovery momentum from Monday (July 17) onwards

KUALA LUMPUR (Bernama): Bursa Malaysia is expected to continue its recovery momentum this week driven by a bullish outlook on the local and regional market, a dealer said.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said he expected the buying momentum on the local market to continue next week given the improving market sentiment accompanied by the cheap valuations of the FBM KLCI.

"Nevertheless, we do not discount the possibility of profit takings, hence, we anticipate the benchmark index to trend range bound next week within 1,400-1,420 with immediate resistance at 1,430 while support at 1,380,” he told Bernama.

Thong said across the region, key indices demonstrated positive momentum propelled by encouraging signals from international stock markets.

"Investor sentiment remains positive following the release of the United States’ Producers Price Index (PPI) which came in lower than expected fueling optimism that the US Federal Reserve may cool down rate hike later this month,” he said.

For most of this week, the FBM KLCI showcased an impressive performance buoyed by strong buying support from local institutions and the resurgence of foreign funds.

On a Friday-to-Friday basis, the FBM KLCI rose 34.42 points to finish at 1,412.09 compared with 1,377.67 a week earlier.

On the index board, the FBM Emas Index increased 265.64 points to 10,432.12, the FBMT 100 Index improved 254.18 points to 10,114.50, the FBM Emas Shariah Index added 278.15 points to 10,709.33, the FBM 70 Index gained 379.60 points to 13,825.29 and the FBM ACE Index perked 139.90 points to 5,279.77.

Sector-wise, the Financial Services Index surged 357.73 points to 15,735.22, the Plantation Index climbed 95.19 points to 6,898.12, the Industrial Products and Services Index advanced 4.57 points to 162.82 and the Energy Index was 31 points firmer at 832.20.

Weekly turnover increased to 14.82 billion units valued at RM9.55 billion from 12.19 billion units valued at RM7.66 billion in the preceding trading week.

The Main Market volume was higher at 10.82 billion shares worth RM8.35 billion compared with 8.52 billion shares worth RM6.43 billion in the previous week.

Warrants turnover widened to 1.56 billion units valued at RM238.94 million versus 1.36 billion units valued at RM225.95 million last week.

The ACE Market volume strengthened to 2.43 billion shares worth RM958.83 million from 2.25 billion shares worth RM994.16 million previously. - Bernama