KUALA LUMPUR – The upward momentum on Bursa Malaysia is expected to spill over into next week, with its key index inching towards the 1,600 psychological level as investors return from their long holiday break and nibble on cheap value stocks.
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim expects the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) to move within the range of 1,580 to 1,600 points.
“As markets, including Malaysia and Indonesia, reopen next week from a long weekend, we expect trading activities to increase to normal levels,” he told Bernama.
“The nationwide movement control order (MCO) and strong commodity prices, such as Brent crude and crude palm oil, will influence sentiment in the market.”
For the just-ended week, the FBM KLCI declined 4.93 points to 1,582.52 on Wednesday from the 1,587.45 registered the previous Friday.
The local market was closed on Thursday and Friday this week, in conjunction with the Hari Raya Aidilfitri holiday, and was mainly influenced by domestic factors.
These include the MCO, first-quarter gross domestic product announcement by Bank Negara Malaysia, and sentiment towards the long weekend. – Bernama, May 15, 2021
