By Zairina Zainudin and Abdul Hamid A Rahman
KUALA LUMPUR, Jan 27 (NNN-Bernama) — The uptrend momentum on Bursa Malaysia, the stock exchange of Malaysia, is expected to continue next week, with traders remaining cautiously optimistic over external developments.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the brokerage firm has maintained its positive outlook, supported by attractive valuations, increase in investor confidence gauging from the higher average daily trading volume and strong foreign buying.
Nonetheless, it does not discount the possibility of profit-taking activities emerging next week, he said.
“The key index staged a rebound and managed to surpass the stiff resistance level of 1,500 last Wednesday.
“Having posted five consecutive white candles, the index signals sustained buying interest, pointing towards the potential for additional upward movement,” he told Bernama.
Thong said a subsequent resistance level has been identified at 1,527 and surpassing this level could signify additional upward momentum.
On the flip side, the critical support level is set at 1,477, and any breach below this level would prompt a reevaluation of Rakuten Trade’s short-term bullish stance for the benchmark index, he said.
“As such, we anticipate the FTSE Bursa Malaysia KLCI (FBM KLCI) to trend between 1,495 and 1,515 next week,” he said.
On the external front, Thong said the local market would react following the United States (US) inflation data on Friday and would closely monitor the upcoming Federal Reserve meeting to gauge the outlook for interest rate.
He said China’s Purchasing Managers Index data for January is due next week, which would also provide more cues on business activity.
For the week just ended, the local bourse was influenced by the possibility of a US rate cut, China economic stimulus as well as Bank Negara Malaysia’s (BNM) overnight policy rate (OPR) decision.
BNM’s Monetary Policy Committee (MPC) had during its first meeting of the year on Wednesday, decided to maintain the OPR at 3.00 per cent, making it the fourth pause in a row.
The FBM KLCI moved in a stable market environment, surpassing the 1,500-psychological mark and recorded a five-day winning streak on Friday.
Bursa Malaysia and its subsidiaries were closed on Thursday in conjunction with Thaipusam festival.
On a Friday-to-Friday basis, the key index rose 19.91 points to 1,506.28 from 1,486.37 previously.
On the index board, the FBM Emas Index rose 167.63 points to 11,232.79, the FBMT 100 Index increased 151.09 points to 10,885.38, the FBM 70 Index surged 241.82 points to 15,283.21, the FBM Emas Shariah Index climbed 118.99 points to 11,289.66 and the FBM ACE Index gained 51.98 points to 4,842.13.
Sector-wise, the Financial Services Index soared 212.18 points to 16,825.7, the Energy Index bagged 35.23 points to 878.55, the Plantation Index improved 2.63 points to 7,165.72, while the Industrial Products and Services Index was unchanged at 173.92.
Weekly turnover shrank to 14.42 billion units worth RM9.63 billion (US$1=RM4.728) versus 25.91 billion units worth RM14.69 billion in the preceding week.
The Main Market volume dropped to 8.65 billion shares worth RM8.53 billion from 16.10 billion shares worth RM12.79 billion in the previous week.
Warrants turnover slipped to 2.26 billion units valued at RM313.69 million compared with 3.27 billion units valued at RM425.21 million last week.
The ACE Market volume fell to 3.48 billion shares worth RM781.57 million vis-a-vis 5.93 billion shares worth RM1.48 billion previously.
— NNN-BERNAMA