KUALA LUMPUR (Dec 31): Bursa Malaysia looks set to kick off the new year within the current level, with the FBM KLCI fluctuating in the 1,490 and 1,510 range.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng expects global funds to return to the Asia-Pacific region in 2023, and expects Malaysia to benefit from the spillover effect.

“As we enter 2023, we are optimistic about the local market, and expect participation by local institutions to increase given the improving local economy and corporate earnings.

“Furthermore, the reopening of China will certainly inject some excitement into the regional economy, including Malaysia,’’ he told Bernama.

He said Rakuten Trade is maintaining its end-2023 KLCI target at 1,800, despite global equity markets in cautious mode, given the heightened market volatility and still unresolved Russia-Ukraine war.

An analyst said next week, equity markets are set to be greeted by the Chinese purchasing managers indices (PMIs) on Saturday (Jan 7), which could affect first-day performance should the figures be bearish.

He said despite the country being hit hard by a surge in Covid-19 cases, it is gradually moving away from zero policy and will reopen its borders from Jan 8.

“Equity markets are sensitive to any worrying PMI figures,” the analyst said, adding that the US non-manufacturing PMIs are also due next week.

At home, the first Monetary Policy Committee Meeting will be held on Jan 18-19, when Bank Negara Malaysia will decide on interest rates and provide an up-to-date overview of the economy. 

On a week-to-week basis, the key index bagged 20.81 points to 1,495.49 from 1,474.68 a week earlier.

On the index board, the FBM Emas Index was firmer by 112.26 points to 10,701.55, the FBM Emas Shariah Index soared 230.83 points to 10,938.55, and the FBMT 100 Index lost 118.61 points to 10,419.80. 

The FBM ACE Index increased 33.41 points to 13,015.02, but the FBM 70 Index lost 172.34 points to 5,308.33. 

Sector-wise, the Industrial Products and Services Index ticked up 2.86 points to 181.78, and the Plantation Index surged 229.45 points to 7,084.68.

The Financial Services Index trimmed 122.72 points to 16,501.31, and the Energy Index was down 5.56 points to 776.19.

Weekly turnover declined to 10.56 billion units worth RM7.70 billion from 13.33 billion units worth RM7.85 billion in the previous week.

The Main Market volume went down to 6.51 billion shares valued at RM6.42 billion, against 7.56 billion shares valued at RM5.73 billion last week.

Warrant volume went up to 2.43 billion units worth RM360.02 million, from 1.54 billion units worth RM328.58 million previously.

The ACE Market volume narrowed to 2.82 billion shares worth RM1.05 billion, versus 4.23 billion shares worth RM1.78 billion a week ago.

Bursa Malaysia and its derivatives market will be closed on Monday for the New Year holiday.