KUALA LUMPUR: Buying momentum on Bursa Malaysia is expected to pick up next week on positive external developments following the de-escalation of trade war between the United States (US) and China.
A market analyst said the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI), which stayed below the 1,600 psychological level last week due to continuous global pressure, would likely rebound should market concerns subside.
“The US-Iran tension remains on a soft ground, despite no escalation; oil price remains below US$65 per barrel; a quiet week for energy stocks; commodities are also on soft ground due to tension with India; and the US-China trade tension subsides which would be good for global trade in the long run.
“However, as the global economic downtrend is in the short view, the index will continue to move between 1,570 (support) and 1,620 (resistance),” she said.
Back home, the analyst said reports that the government will do away with golden shares in government-linked companies (GLCs) had spiked interest among foreign investors as the stocks held by the government has high yield.
Contrary to belief, the government’s move to dispose of its shareholdings would actually be good in the long run as it would increase the liquidity in the company’s shares and ultimately in the market, she said.
Currently, the GLC’s holdings in the FBM KLCI component stocks are about 65 per cent.
On a Friday-to-Friday basis, the FBM KLCI gained 4.35 points to 1,595.81 from 1,591.46 previously, influenced by the easing Tehran-Washington geopolitical tension, US-China trade deal updates, Wall Street performance, as well as regional stocks sentiment.
On the scoreboard, the FBM Emas Index was 19.02 points higher at 11,363.55, the FBMT 100 Index gained 13.79 points to 11,152.73, the FBM ACE Index rose 84.42 points to 5,565.12 and the FBM Emas Shariah Index perked up 51.54 points to 12,019.22.
However, the FBM 70 lost 50.57 points to 14,209.89.
Sector-wise, the Financial Services Index erased 131.25 points to 15,418.24, the Plantation Index was 157.57 points weaker at 7,535.43, but the Industrial Products and Services Index added 0.31 of-a-point to 153.87.
Weekly turnover declined to 13.24 billion units worth RM9.27 billion from 15.82 billion units worth RM9.14 billion in the previous week.
Main Market volume dwindled to 8.67 billion shares worth RM8.23 billion compared with 11.10 billion shares worth RM7.99 billion.
Warrants turnover widened to 1.41 billion units worth RM249.92 million against 1.35 billion units worth RM227.40 million previously.
The ACE Market volume decreased to 3.16 billion shares worth RM783.04 million compared with 3.35 billion share worth RM919.26 million in the previous week. – Jan 19, 2020, Bernama