KUALA LUMPUR, Dec 16 ― Improving catalysts and global optimism are expected to keep Bursa Malaysia on positive territory next week, a dealer said.
Rakuten Trade equity research vice-president Thong Pak Leng said from a technical perspective, the week that was had seen the benchmark index close higher than its opening levels each trading day.
“Considering the 20-day exponential moving average line turning upward and pushing further away from both the 20-day and 50-day EMA lines, we believe there is upward momentum in the near term.
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“Notably, the next resistance levels are identified at 1,465, followed by the psychological mark of 1,500 and if the FBM KLCI surpasses the 1,465-resistance line, we foresee additional upward potential,” he told Bernama.
He added that the brokerage firm anticipated the benchmark index to trend within the 1,455 to 1,475 range for next week, with immediate support at 1,450 followed by 1,440.
Meanwhile, Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the Cabinet reshuffle may have also lifted sentiment as the move indicates the seriousness of the present administration’s intention to enact economic reforms.
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“Broadly speaking, Malaysian equities have gained momentum following the FOMC decision to maintain their Fed Fund Rate steady at 5.50 per cent, while signalling that they might cut rates in 2024.
“The FBM KLCI gained more than 20 points week-on-week as a result, therefore, the upside potential for the FBM KLCI is quite visible in 2024. As such, expect the benchmark index to maintain its upward trend next week,” he said.
Bursa Malaysia kicked off the week just ended on a cautious mode as investors anticipated the outcome of the Federal Open Market Committee (FOMC) meeting on December 12-13, as well as digesting Prime Minister, Datuk Seri Anwar Ibrahim’s announcement of a Cabinet reshuffle.
Following the FOMC meeting, the market cheered the dovish meeting outcome, in which the Fed maintained its interest rate and anticipated three rate decreases in 2024.
On a Friday-to-Friday basis, the FBM KLCI rose 20.28 points to end the week at 1,462.25 versus 1,441.97 a week ago.
On the index board, the FBM Emas Index surged 205.20 points to 10,835.88, the FBMT 100 Index leaped 201.97 points to 10,502.27 and the FBM Emas Shariah Index soared 238.83 points to 10,969.75.
The FBM 70 Index surged 517.15 points to 14,474.12, while the FBM ACE Index rose 74.25 points to 5,180.67.
Sector-wise, the Financial Services Index advanced 103.2 points to 16,436.96, the Energy Index was 20.06 points better at 816.29, the Plantation Index rose 89.58 points to 7,046.57 and the Industrial Products and Services Index edged up 2.77 points to 172.47.
Bursa Malaysia ended the week with a stronger turnover of 18.88 billion units worth RM13.44 billion versus 15.50 billion units worth RM9.66 billion in the preceding week.
The Main Market volume improved to 11.68 billion shares valued at RM11.87 billion against 9.07 billion shares valued at RM8.30 billion in the previous week.
Warrants turnover increased to 4.02 billion units valued at RM527.82 million from 3.15 billion units valued at RM324.92 million last week.
The ACE Market volume, however, shrank to 3.16 billion shares worth RM1.03 billion, compared to 3.23 billion shares worth RM1.03 billion previously. ― Bernama
