KUALA LUMPUR (Jan 14): Bursa Malaysia is expected to trend higher next week amid easing inflationary pressure in the US and expectations for smaller interest rate hikes, said an analyst.
SPI Asset Management managing partner Stephen Innes said investors will start to move out of the risk curve and start buying Malaysian assets with linkages to China's economy such as commodity exporters, tourism, services as well as industrial exports.
According to the Department of Statistics Malaysia, the manufacturing sector continued its double-digit growth to record RM159.2 billion in sales in November 2022, an increase of 11.8% year on year.
"We will also see repatriation flows from high net-worth investors that will move out of US stocks and back into Malaysia stocks, also driven by a weaker US dollar," he told Bernama.
The US consumer price index (CPI) fell 0.1% in December, meeting expectations, for the biggest drop since April 2020.
As such, he reckoned that the FBM KLCI would test the 1,500-level next week.
Meanwhile, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng also anticipated the benchmark index to re-test the 1,500 mark next week with positive market sentiment.
“From a technical point of view, we shall see immediate resistance at 1,500, followed by 1,530, with support at 1,460-65,” he said.
The local market was traded mostly higher, tracking regional peers and boosted by the reopening of China's border, coupled with the December 2022 CPI data from the US.
On a week-to-week basis, the key index rose 14.48 points to 1,495.03 against 1480.55 a week earlier.
On the index board, the FBM Emas Index rose 153.47 points to 10.785.80, the FBM Emas Shariah Index gained 140.85 points to 10,976.72, and the FBMT 100 Index added 140.15 points to 10,482.57.
The FBM ACE Index increased 77.58 points to 5,455.48 and the FBM 70 Index advanced 345.96 points to 13,380.67.
Sector-wise, the Industrial Products and Services Index inched up 3.62 points to 185.29 and the Plantation Index gained 32.74 points to 6,922.91.
The Financial Services Index widened 205.67 points to 16,621.15 and the Energy Index gained 45.35 points to 822.94.
Weekly turnover increased to 16.92 billion units worth RM10.77 billion against 13.32 billion units worth RM6.71 billion last week
The Main Market volume jumped to 10.35 billion shares valued at RM8.25 billion from 8.06 billion shares valued at RM5.12 billion a week ago.
Warrants volume rose to 1.56 billion units worth RM354.78 million from 1.50 billion units worth RM340.67 million previously.
The ACE Market volume grew to 5.03 billion shares worth RM2.16 billion from 3.76 billion shares worth RM1.25 billion on Friday last week.