BURSA MALAYSIA LIKELY TO TRADE HIGHER NEXT WEEK

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, July 13 (Bernama) -- Bursa Malaysia is expected to trade higher next week on persistent optimism for the local bourse, according to analysts. 

UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said the bulls are believed to still have the upper hand over the next couple of weeks, as long as the FTSE Bursa Malaysia KLCI (FBM KLCI) remains above the flag resistance turned support at 1,603. 

“The next target is seen at 1,630. Our optimism is supported by the progress of recovery in China,” he told Bernama. 

He said China’s June export data released on Friday showed exports growing by 8.6 per cent year-on-year (y-o-y), while through the first half of 2024, China’s exports rose by 3.6 per cent y-o-y. 

Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the FBM KLCI has continued its recovery since last Wednesday, breaking out from the U-shaped recovery pattern and surpassing the 1,620 resistance level on Thursday.

“Despite a pullback following the rally, we view this correction as a healthy consolidation necessary to sustain the upward trend.

“The 20-day exponential moving average (EMA) trending upwards, along with the index distancing itself from all EMAs, suggests momentum that could drive the index towards the next resistance level of 1,632.

“A breakthrough above this level may indicate further upward movement,” he told Bernama.

He said that on the downside, immediate support levels now lie at 1,600-1,608, and consequently, the benchmark index will likely trade within the range of 1,610-1,630 next week.

On a Friday-to-Friday basis, the FBM KLCI grew 8.04 points to 1,619.06 from last week’s 1,611.02.

The market was closed on Monday (July 8, 2024) in conjunction with the Awal Muharam replacement holiday.

During the shortened week, the market was mostly firmer in line with the improving performance of regional peers amid the improved prospects of the United States interest rate cuts.

On the index board, the FBM Emas Index rose 95.71 points to 12,540.70, the FBMT 100 Index jumped 97.74 points to 12,110.62, the FBM Emas Shariah Index strengthened by 108.32 points to 12,915.20, the FBM 70 Index notched up 287.70 points to 18,673.19, and the FBM ACE Index improved 14.90 points to 5,981.21.

Sector-wise, the Financial Services Index widened 196.67 points to 17,800.11, and the Industrial Products and Services Index added 1.04 points to 200.96, whereas the Energy Index eased 2.23 points to 984.52 and the Plantation Index slipped 61.93 points to 6,943.71.

For the week just ended, turnover decreased to 19.39 billion units valued at RM15.69 billion against 23.79 billion units valued at RM17.49 billion in the preceding week.

The Main Market volume fell to 11.38 billion shares worth RM13.79 billion from 13.10 billion shares worth RM14.49 billion a week ago.

Warrants turnover slipped to 3.94 billion units valued at RM496.75 million versus 4.86 billion units valued at RM693.98 million last week.

The ACE Market volume was down to 4.05 billion shares worth RM1.39 billion compared with 5.82 billion shares worth RM2.29 billion previously.

-- BERNAMA