KUALA LUMPUR (Bernama): Bursa Malaysia is expected to rebound amid bargain-hunting activities this coming week driven by improved risk appetite in the market post-Budget 2024.
Inter-Pacific Asset Management Bhd chief economist and fund manager Datuk Dr Nazri Khan said he is expecting FBM KLCI to do an oversold rebound and remain on the ascend, climbing past the 1,440 level to retest the 1,450 level next week as foreign funds make a comeback and the market is on a good run.
"Foreign funds continue to make a beeline back to the key index stocks in what is seen as fresh bargain hunting ahead of the Budget 2024 yesterday,” he told Bernama.
He said the broader market indices were also buoyed by renewed buying interest, helping market breadth to stay positive with traded volumes also picking up to nearly 3.4 billion units for the day.
"The recent recovery is encouraging as it allowed the key index to regain the bulk of its losses in the profit-taking earlier in the month,” he said.
Additionally, he said the rebound also saw the FBM KLCI climb back above the critical 200-day moving average, an indication that the uptrend would resume.
"Notwithstanding the recent improved market trend, Budget 2024 could set the tone for the Malaysian equity market’s direction over the near-to-medium term as the budget is seen as a critical blueprint in charting the country’s economic course and to address the various headwinds that the country faces.
"Pending the unveiling of the Budget 2024 yesterday, however, we see the FBM KLCI largely on a bullish holding pattern.
He said the immediate resistance is set at the 1,450 level followed by the 1,480 level while the supports are at 1,430 and 1,400 levels, respectively.
For the week just ended, the FBM KLCI traded mostly higher due to tensions in the Middle East and improved regional markets’ performance.
On a Friday-to-Friday basis, the FBM KLCI increased 27.26 points to end the week at 1,444.14 versus 1,416.88 a week earlier.
On the index board, the FBM Emas Index jumped 191.10 points to 10,694.94, the FBMT 100 Index advanced 187.24 points to 10,356.88, the FBM Emas Shariah Index strengthened 131.38 points to 10,925.47 and the FBM 70 Index expanded 221.24 points to 14,213.41 but the FBM ACE Index inched down 5.56 points to 5,144.95.
Sector-wise, the Plantation Index perked 25.53 points to 6,862.73, the Financial Services Index surged 394.59 points to 16,264.18, the Energy Index rose 27.42 points to 877.36 and the Industrial Products Services Index edged up 3.62 points to 174.44.
Weekly turnover was better at 15.92 billion units worth RM9.81 billion versus 15.23 billion units worth RM10.59 billion in the preceding week.
The Main Market volume rose to 10.28 billion shares worth RM8.49 billion against 9.65 billion shares worth RM9.25 billion in the previous week.
Warrant turnover remained unchanged at 1.57 billion units worth RM215.29 million from 1.57 billion units worth RM190.12 million last week.
The ACE Market volume was stronger at 3.97 billion shares worth RM1.10 million against 3.94 billion shares worth RM1.14 million previously. - Bernama
