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KUALA LUMPUR (April 3): The FBM KLCI benchmark is likely to break above the 1,600 level next week in line with broader optimism about the US economy and an expected rebound in commodity prices, said a analyst.
However, Axi’s chief global markets strategist Stephen Innes said the key index would likely be affected by glove stocks due to improved global vaccination rates that would decrease demand for medical items like gloves.
“Glove manufacturers left a negative footprint this week, while other sectors should improve, such as banking and oil and gas stocks,” he said. Named in an email interview.
Glove stocks took a beating on Wednesday after U.S. Customs and Border Protection (CBP) ordered its staff at all U.S. ports of entry to begin seizing disposable gloves produced in Malaysia by Top Glove. Corp Bhd.
Meanwhile, Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said the KLCI is expected to trade within a narrow range of 1,590 to 1,600 points, but could surpass the 1,600 point level should they occur. positive advances in the vaccine, which has faced scrutiny in Europe. .
“From now on, the drivers of earnings next week could come from sectors linked to economic growth, such as industrial production, financial services and oil and gas,” he added.
The Energy Index ended the week 1.94 points higher at 937.12, as Brent crude rose 3.38% to US $ 64.86 (RM268.52) per barrel, after the Organization of The Petroleum Exporting Countries (OPEC) and their allies will agree to add more than two million. barrels a day to world oil supplies between May and July.
The move will rebuild a quarter of crude oil stocks after the oil cartel and its allies made a deep cut a year ago due to the Covid-19 pandemic.
From Friday to Friday, the benchmark KLCI index fell 16.07 points to 1,585.35 from 1,601.42 last Friday.
On the scoreboard, the FBM Emas index fell 35.19 points to 11,743.10, the FBMT 100 index fell 50.62 points to 11,393.36 and the FBM Emas Shariah index fell 72.31 points to 13,005.85.
The FBM 70 reaffirmed 178.86 points at 15,729.32, and the FBM ACE index erased 727.99 points at 9,789.12.
Regarding the sector, the Technology Index added 4.16 points to 87.35, the Industrial Products and Services Index added 2.61 points to 194.02, the Plantations Index fell 54.91 points to 7,045.54 and the Health Index sank 78.87 points to 2,937 .70.
The Financial Services Index lost 23.73 points to 15,276.56 and the Energy Index fell 13.87 points to 937.12.
The turnover increased to 35.38 billion units worth RM 18.02 billion from 27.58 billion units worth RM 14.63 billion in the previous week.
Main market volume jumped to 23.28 billion shares worth RM 14.77 billion from 16.44 billion shares worth RM 11.42 billion last week.
Collateral volume increased to 3,510 million units worth RM374.24 million from 828.19 million units worth RM176.07 million.
ACE market volume improved to 10.75 billion shares worth RM3.03 billion from 10.05 billion shares worth RM3.03 billion the previous week.
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