The Forecast for Bursa Is Positive for the Coming Week, With the KLCI Possibly Testing the 1,600 Critical Level

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The prognosis for Bursa Malaysia is projected to remain favourable next week, owing to attractive values and continued strong foreign inflows, despite some profit-taking in the week just concluded.

Thong Pak Leng, vice-president of equities research at Rakuten Trade Sdn Bhd, said profit-taking in the preceding two days provided an excellent opportunity for bargain hunting.

“As such, we expect the FTSE Bursa Malaysia KLCI (FBM KLCI) to show a rebound next week, with the psychological resistance level of 1,600 remaining, while the major index is expected to hover between 1,590 and 1,610.”

Meanwhile, Mohd Afzanizam Abdul Rashid, chief economist at Bank Islam Malaysia Bhd, said the prognosis for Malaysian equities appeared good as the economy is projected to resume growth following the easing of the inter-state travel restriction.

“We anticipate early benefits for areas like as logistics, food and beverage, construction, and aviation. Banking stocks also appear to be appealing, as improved economic forecasts indicate that downside risks to the Overnight Policy Rate are limited, implying that Net Income Margin should remain relatively constant,” he explained.

Mohd Afzanizam stated that the financial markets will be looking for additional details on Budget 2022 next week.

“In that regard, the FBM KLCI may trade in a narrow range ahead of Friday’s budget announcement, most likely between 1,575 and 1,585 points,” he added.

On a Friday-to-Friday basis, the benchmark index fell 10.2 points to 1,588.08, down from 1,598.28 the previous week.

On Tuesday, Bursa Malaysia and its subsidiaries were closed in observance of the Maulidur Rasul holiday.

The FBM Emas Index declined 59.47 points to 11,709, the FBMT100 Index down 66.95 points to 11,339.79, and the FBM Emas Shariah Index fell 87.91 points to 12,789.01.

The FBM 70 index fell 67.93 points to 15,376.63, while the FBM ACE index decreased 15.43 points to 7,170.88.

Financial Services Index down 12.59 points to 15,718.05, Industrial Products and Services Index fell 3.2 points to 209.74, and Energy Index fell 23.85 points to 821.52.

The Plantation Index decreased by 18.1 points to 7,021.94, the Healthcare Index down by 11.12 points to 2,500.4, but the Technology Index increased by 1.31 points to 99.08.

Weekly turnover declined to 15.83 billion units worth RM11.68 billion during the holiday-shortened trading week, down from 25.71 billion units worth RM16.61 billion the previous week.

The Main Market traded 10.41 billion shares for RM10.23 billion last week, down from 17.04 billion shares worth RM14.5 billion the previous week.

The total number of warrants issued decreased to 1.7 billion units worth RM243.49 million from 1.72 billion units worth RM213.25 million earlier.

The ACE Market traded 3.69 billion shares worth RM1.2 billion last week, down from 6.92 billion shares worth RM1.9 billion the week before.

Published by Zack Baharum

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