PETALING JAYA: Bursa Malaysia is expected to trade higher this week on persistent optimism for the local bourse, according to analysts.
UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said the bulls are believed to still have the upper hand over the next couple of weeks, as long as the FBM KLCI remains above the flag resistance turned support at 1,603.
“The next target is seen at 1,630. Our optimism is supported by the progress of recovery in China,” he told Bernama.
He said China’s June export data showed exports growing by 8.6% year-on-year (y-o-y), while through the first half of 2024, China’s exports rose by 3.6% y-o-y.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the FBM KLCI has continued its recovery since last Wednesday, breaking out from the U-shaped recovery pattern and surpassing the 1,620-point resistance level last Thursday.
“Despite a pullback following the rally, we view this correction as a healthy consolidation necessary to sustain the upward trend.
“The 20-day exponential moving average (EMA) trending upwards, along with the index distancing itself from all EMAs, suggests momentum that could drive the index towards the next resistance level of 1,632.
“A breakthrough above this level may indicate further upward movement,” he said.
He said that on the downside, immediate support levels now lie at 1,600 to 1,608 points, and consequently, the benchmark index will likely trade within the range of 1,610 to 1,630 points this week.
On a Friday-to-Friday basis, the FBM KLCI grew 8.04 points to 1,619.06 from last week’s 1,611.02. The market was closed on July 8, 2024 in conjunction with the Awal Muharam replacement holiday.
During the shortened week, the market was mostly firmer in line with the improving performance of regional peers amid the improved prospects of the US interest rate cuts.
For the week just ended, turnover decreased to 19.39 billion units valued at RM15.69bil against 23.79 billion units valued at RM17.49bil in the preceding week.
The Main Market volume fell to 11.38 billion shares worth RM13.79bil from 13.10 billion shares worth RM14.49bil in the previous week.
