Bursa Malaysia set to rebound this week

TradeView Capital's Ng opined that investors are positive on the government’s efforts to rationalise subsidy and embark on fiscal consolidation.

KUALA LUMPUR: Bursa Malaysia is expected to rebound amid bargain-hunting activities this week, driven by improved risk appetite in the market post-Budget 2024.

Inter-Pacific Asset Management Bhd chief economist and fund manager Datuk Dr Nazri Khan said he is expecting the FBM KLCI to do an oversold rebound and remain on the ascend, climbing past the 1,440 level to retest the 1,450 level this week.

This is as foreign funds make a comeback and the market is on a good run.

“Foreign funds continue to make a beeline back to the key index stocks in what is seen as fresh bargain hunting ahead of the Budget 2024 yesterday,” he told Bernama.

He said the broader market indices were also buoyed by renewed buying interest, helping market breadth to stay positive with traded volumes also picking up to nearly 3.4 billion units for the day.

“The recent recovery is encouraging as it allowed the key index to regain the bulk of its losses in the profit-taking earlier in the month,” he said.

Additionally, he said the rebound also saw the FBM KLCI climb back above the critical 200-day moving average, an indication that the uptrend would resume.