KUALA LUMPUR (Oct 9): Bursa Malaysia is expected to extend its winning streak next week, riding on positive market sentiment with buying likely focused on the plantation and oil and gas stocks.
Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng said the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) would likely hover between 1,565 and 1,580 next week.
He said the bellwether index, which has surpassed its 1,550 resistance level on Friday, might reach the next resistance level of 1,580 next week, followed by the psychological level of 1,600.
Meanwhile, Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the equity market would perform better next week in light of improving data points coming out from the US employment market alongside elevated levels of commodity prices.
“Thus far, we have seen signs of improving interest from the foreign investors which could lend some support to equity prices,” he told Bernama.
For the week just ended, the local bourse started on a weak note, weighed by the US debt ceiling worries, but rebounded from Tuesday onwards as risk appetite was fueled by the interstate border reopening talks locally, as well as the firmer commodity prices.
The price of crude palm oil futures recorded a fresh all-time high on Friday, with the benchmark December 2021 contract closing at RM4,966 a tonne. It was the third record-high achieved during the week.
Crude oil prices stood at above the US$82 per barrel mark.
On a Friday-to-Friday basis, the benchmark index rose 39.42 points to end the week at 1,563.9 from 1,524.48 previously.
On the index board, the FBM Emas Index soared 277.57 points to 11,501.76, the FBMT100 Index jumped 250.93 points to 11,158.17, the FBM Emas Shariah Index surged 335.66 points to 12,639.69, and the FBM 70 increased 83.63 points to 15,095.42.
The FBM ACE, however, erased 21.8 points to 7,140.42.
Sector-wise, the Financial Services Index gained 52.48 points to 15,212.56, the Industrial Products and Services Index edged up 6.53 points to 209.46, the Energy Index bagged 70.47 points to 791.06, the Technology Index inched up 1.96 points to 96.41, and the Healthcare Index trimmed 19.9 points to 2,514.57.
The Plantation Index shot up 616.95 points to 6,965.03 following the firmer CPO futures prices.
During the week, weekly turnover decreased marginally to 21.41 billion units worth RM15.22 billion compared with 21.58 billion units valued at RM15.04 billion in the previous week.
The Main Market volume weakened slightly to 14.14 billion shares worth RM12.96 billion against 14.31 billion shares worth RM13.08 billion in the prior week.
Warrants volume improved to 2.11 billion units worth RM337.98 million versus 1.76 billion units valued at RM280.98 million previously.
The ACE Market volume fell to 5.14 billion shares worth RM1.93 billion from 5.75 billion shares worth RM1.68 billion in the previous week.