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KUALA LUMPUR, Dec 27 (Bernama): Bursa Malaysia is expected to rebound strongly next week, with the FTSE Bursa Malaysia KLCI (FBM KLCI) benchmark set to test the psychological level of 1,700, amidst activities of facade and better market sentiment.
Inter-Pacific Asset Management Sdn Bhd Chief Executive Officer Datuk Dr. Nazri Khan Adam Khan said the key index is set to march into the new year on a high note, building on the ‘Santa Claus’ rally as it Investors turn bullish towards the end of the year.
“Traditionally, the last week of December and the first week of the new year are the strongest weeks of the year, so I think KLCI will move higher between 1,680 and 1,700,” he told Bernama.
He said market sentiment would be positive due to rising commodity prices, the stronger ringgit against the US dollar, optimism about the distribution of the COVID-19 vaccine in Malaysia next year, as well as an agreement from fluid free trade between Great Britain and the European Union.
Nazri Khan said that overall market volume would be slim in the next two weeks as most institutional buyers would be down due to the holidays, but market momentum would be supported by buying small-cap stocks.
Bursa Malaysia started the week on a weak note as investor sentiment was hit by concerns about the outlook for the global economy, and risk appetite continued to wane the next day on mounting concerns about the new strain. of COVID-19 in the UK and weak oil prices.
However, the local market snapped its losing streak on Wednesday when bargain hunting emerged ahead of the long weekend, following promising news of the delivery of the COVID-19 vaccine by pharmaceutical company AstraZeneca, which is expected to take place in the first half of 2021.
However, FBM KLCI reversed its gains on Thursday due to profit taking amid cautious market sentiment, before taking a break for Christmas on Friday.
From Friday to Thursday, the FBM KLCI benchmark index decreased 11.32 points to 1,641.17 on Thursday from 1,652.49 on Friday of last week.
On the scoreboard, the FBM Emas index fell 79.57 points to 11,810.92, the FBMT 100 index erased 80.12 points to 11,569.93, the FBM 70 contracted 106.06 points to 15,112.54 and the FBM Emas index Shariah dropped 51.29 points to 13,283.18.
However, the FBM ACE index rose 209.65 points to 10,657.3.
Regarding the sector, the plantations index obtained 57.48 points to 7,407.28, the industrial products and services index added 0.2 points to 175.89, while the financial services index fell 164.63 points to 15,260 , 37.
The Energy Index lost 28.58 points to 879.47, the Health Index lost 29.95 points to 3,672.36, while the Technology Index cut 0.46 points to 67.41.
Weekly turnover dramatically decreased to 28.99 billion units worth RM 14.05 billion from 50.37 billion units worth 26.15 billion RM last week.
Major market volume plummeted to 17.26 billion shares valued at RM10.7 billion from 32.40 billion shares valued at RM22.03 billion previously.
Warrant turnover, however, increased to 7.85 billion units worth RM364.77 million from 4.970 million units worth RM804.71 million in the prior week.
ACE’s market volume dropped to 9.52 billion shares valued at RM2.99 billion from 13.04 billion shares valued at RM3.31 billion previously. – Bernama
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