FBM KLCI to touch 1,680 next week

Posted on 16 January 2017

Source: The Sun Daily

Bursa Malaysia is expected to see moderately bullish trading next week, with the benchmark index FTSE Bursa Malaysia KLCI (FBM KLCI) likely to touch the 1,680-level.

Affin Hwang Investment Bank Vice-President/Head of Retail Research, Datuk Dr Nazri Khan Adam Khan, said recovering commodity prices, such as Brent crude oil, which was now above US$55 (US$1 = RM4.46) per barrel, would provide a feel-good vibe for investors.

"Trade data from China were also encouraging, with its imports rising slightly more than expected, which can potentially translate into better exports for Malaysia.

"Furthermore, the World Bank's forecast that the Malaysian economy, as well as, global economy would accelerate this year will likely boost the stock market," he told Bernama.

For the week just-ended, the local index trended higher after US president-elect Donald Trump failed to give clarity on the giant economy's fiscal policy, which caused the US dollar to weaken and US bond yield to decline.

However, the FBM KLCI turned bearish towards the end of the week on profit-taking.

On a week-to-week basis, the key index FBM KLCI fell 2.99 points to 1,672.5 from 1,675.49 last Friday.

The FBM Emas Index rose 12.42 points to 11,711.31, FBMT 100 Index increased 7.91 points to 11,415.69, FBM Ace gained 201.64 points to 5,087.17 and the FBM 70 surged 117.35 points to 13,363.68.

The FBM Emas Syariah Index was 56.03 points weaker at 12,236.81.

On a sectoral basis, the Finance Index expanded 105.5 points to 14,745.99 and the Plantation Index put on 46.21 points to 7,937.06.

The Industrial Index declined 24.31 points to 3,170.08.

Weekly turnover jumped to 11.99 billion units worth RM9.69 billion from 8.13 billion units worth RM5.52 billion last Friday.

Main market volume narrowed to 7.99 billion shares worth RM8.98 billion from 15.96 billion shares worth RM6.22 billion previously.

Warrant turnover rose to 866.07 million units valued at RM142.42 million from 846.86 million units valued at RM139.08 million last Friday.

The ACE market jumped to 3.11 billion shares worth RM562.63 million from 1.3 billion shares worth RM158.31 million last week.

Gold futures contracts on Bursa Malaysia Derivatives are expected to trend higher next week, tracking the US COMEX gold market and vice versa, said a dealer.

Phillip Futures Sdn Bhd Dealer, Ler Wee Liang, said there would also be stronger demand for gold ahead of the Chinese New Year festival, as gold jewelleries were the Chinese’s favourite.

"The weak local currency will continue to boost foreign demand as well and provide support to the gold price, as the ringgit-based gold became cheaper to the foreign buyers," Ler told Bernama.

On a Friday-to-Friday basis, January 2017 rose 48 ticks to RM170.90 a gramme, February 2017 and March 2017 each gained 43 ticks to RM171.25 and RM172.05 a gramme, respectively, while April 2017 added 33 ticks to RM172.10 a gramme.

Weekly turnover went down to 56 lots, worth RM964,400, from 79 lots worth RM1.34 million, recorded last week.

Open interest on Friday was higher at 233 contracts from 227 contracts previously. 

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