Bursa Malaysia Likely To Trade With An Upside Bias Next Week
By Engku Shariful Azni Engku Ab Latif
KUALA LUMPUR, Aug 22 (Bernama) -- Bursa Malaysia is expected to trade with an upside bias next week, with the benchmark index seen within the 1,725-1,750 range next week, an analyst said.
Rakuten Trade Sdn Bhd head of research Kenny Yee said the market is likely to remain in consolidation mode, as investors continue to weigh resilient corporate earnings against persistent foreign selling and uncertainties surrounding global interest rates and geopolitical developments.
“Although corporate earnings are expected to remain decent, persistent net foreign outflows in recent weeks have capped the index’s upside,” he told Bernama.
Meanwhile, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to maintain its upward trajectory next week, although profit-taking could emerge if the index moves above the 1,740 level following its recent gains.
He said the direction of global bond yields will remain important, particularly for Malaysian banks.
“The recent rise in the US 10-year Treasury yield has raised global discount rates and put some pressure on banking valuations as investors reassess funding costs and net interest margin prospects.
“A sustained recovery in Malaysian banking stocks is likely to require greater stability in global bond yields, supported by resilient domestic earnings and improving investor flows,” he said.
Mohd Sedek said the market is expected to remain constructive but increasingly selective, with the 1,740 level, US Treasury yields, Brent crude prices and foreign flows likely to determine the sustainability of the next leg higher.
On a Friday-to-Friday basis, the FBM KLCI advanced 9.09 points to 1,736.48 from 1,727.39 a week earlier.
On the index board, the FBM Emas Index rose 16.84 points to 12,832.28, the FBM Top 100 Index gained 24.66 points to 12,650.92, and the FBM Emas Shariah Index climbed 12.56 points to 12,641.79.
The FBM ACE Index jumped 39.01 points to 5,333.79 and the FBM Mid 70 Index lost 142.15 points to 18,151.04.
By sector, the Plantation Index surged 113.25 points to 9,440.65, the Financial Services Index erased 70.63 points to 20,440.65, while the Energy Index shed 2.43 points to 777.03, and the Industrial Products and Services Index eased 0.01 of a point to 187.22.
The weekly turnover expanded to 18.70 billion units worth RM15.92 billion from 17.66 billion units worth RM14.42 billion in the prior week.
The Main Market volume increased to 9.84 billion units valued at RM13.95 billion against 8.91 billion units valued at RM12.59 billion previously.
Warrants turnover improved to 5.60 billion units worth RM745.83 million versus 5.30 billion units worth RM719.94 million last week.
The ACE Market volume declined to 3.15 billion units valued at RM1.60 billion compared with 3.42 billion units valued at RM1.11 billion in the previous week.
-- BERNAMA