KUALA LUMPUR – The local bourse is expected to trend higher next week, with the key FTSE Bursa Malaysia KLCI (FBM KLCI) breaking the psychological level of 1,700 and poised to march into the new year with a big bang.
Inter-Pacific Asset Management Sdn Bhd chief executive Datuk Nazri Khan Adam Khan said positive sentiment in the market has managed to offset some weak market influencers, such as Fitch Ratings’ downgrade, unfavourable economic data and external shocks.
He told Bernama that the local market’s foundation has strengthened as investors now perceive Bursa as a safe haven amid corrections in the US.
“We have optimism to see economic recovery, a strong one, into January, and the fact that there is no knee-jerk reaction (due to the Fitch downgrade) as what many people had anticipated, which is very good.
“That shows we have a resilient, relative-strength Bursa. We will not see any outflow; in fact, (there will be) a huge inflow into the market (next week).”
On prospects for the remaining days of 2020, Nazri Khan said infrastructure-linked stocks, banks, construction, property and telco will remain higher.
He said he does not expect profit-taking to take place soon, but likely one or two weeks after Christmas.
For the just-ended week, Bursa recorded a five-day winning streak, with the key index ending at an 18-month high – a level that was last seen on July 4 last year.
FBM KLCI rose 62.73 points to 1,684.58, from 1,621.85 registered a week earlier.
It started the week higher backed by positive market sentiment following the relaxation of conditional movement control order measures and an assurance of Covid-19 vaccine supply in Malaysia next year.
Strong gains in Top Glove, CIMB and Public Bank helped save the local bourse from joining the regional bandwagon, which is mostly on the downtrend due to concerns over rising coronavirus infections. – Bernama, December 12, 2020
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