Bursa set to be relieved of pre-budget rally next week

At Friday’s close, the FBM KLCI advanced 4.80 points to end at 1,500.29 from Thursday’s close at 1,495.49. — photo by Bernama

Saturday August 27, 2022 10:12 MYT

KUALA LUMPUR, Aug. 27 – Positive news, such as a less hawkish stance from the US Federal Reserve, Chinese stimulus measures and a potential pre-2023 rally in Bursa Malaysia are expected to boost the local stock market next week.

Executive Director and Fund Manager of Inter-Pacific Asset Management Sdn Bhd, Datuk Nazri Khan Adam Khan, said the local stock exchange should see dynamic trading given the external factors and the pre-budget rally as well as the improvement in economic growth of 8.9% in Malaysia in the second half. quarter of 2022, which would encourage foreign investors to opt for risky assets.

“The announcement of the 2023 budget would trigger a political game in the market, through which politically connected stocks would give impetus, especially construction companies.

“Not only that, the facade and government stimulus measures will also increase business,” he told Bernama.

Meanwhile, Vice President of Equity Research at Rakuten Trade Sdn Bhd, Thong Pak Leng, said investors should remain cautious given the heightened risk and volatility in the market as profit-taking could settle.

“Therefore, we expect the FTSE Bursa Malaysia KLCI (FBM KLCI) to range between 1,495 points and 1,515 points next week.

“From a technical standpoint, we will see immediate resistance at the 1530 level while support at the 1470 level,” he added.

At Friday’s close, the FBM KLCI advanced 4.80 points to end at 1,500.29 from Thursday’s close at 1,495.49.

On a weekly basis, the benchmark fell 4.15 points to 1,500.29 from 1,504.44 at the end of the previous week, mainly due to external uncertainties and the corporate earnings season.

On the bulletin board, the FBM Emas index was down 31.05 points at 10,648.84, the FBMT 100 index was down 29.90 points at 10,393.36, the FBM Emas Shariah index was down erased 55.63 points to 10,759.97, the FBM 70 fell 41.29 points to 12,746.15 and the FBM ACE lost 34,315 points. .

At the sector level, the financial services index improved by 37.71 points to 16,763.69, the energy index added 56.10 points to 727.44 but the plantations index fell by 192.90 points to 7,054.34 and the industrial goods and services index fell by 1.56 points to 182.18.

Weekly sales expanded to 12.14 billion units worth RM8.8 billion from 12.58 billion units worth RM9.33 billion the previous week.

Main market volume was lower at 7.98 billion shares valued at RM7.28 billion, compared to 8.54 billion shares valued at RM7.88 billion the previous week.

Warrant volume increased to 1.91 billion units worth RM294.73 million from 1.61 billion units worth RM241.46 million last week .

ACE market volume slipped to 2.24 billion shares valued at RM1.22 billion from 2.40 billion shares valued at RM1.21 billion the previous week. — Bernama

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