Bursa Malaysia Poised For Constructive Upward Bias Next Week

By Karina Imran

KUALA LUMPUR, Jan 31 (Bernama) -- Bursa Malaysia is expected to trade within a constructive upward bias in the 1,730-1,760 range next week, with immediate support around the 1,700 level. 

From a technical perspective, 1,760 represents near-term technical resistance, where short-term profit-taking may emerge, said IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan.

"Beyond this, 1,780 constitutes a more meaningful structural resistance, which would require sustained momentum and follow-through buying to overcome. 

"The FBM KLCI enters the coming week with a constructive technical bias, supported by its position above the 50-, 100- and 200-day moving averages," he told Bernama. 

He said investors are awaiting Malaysia's Purchasing Managers' Index (PMI) figures on Monday. 

"The upcoming print will be closely watched for clearer signs of sustained domestic demand strength, particularly across consumer- and services-related sectors. 

"Any improvement in the PMI reading would help support broader market sentiment beyond the banking sector and would be important in reinforcing the underlying structure of the current rally," he said.

Meanwhile, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said overall, the FBM KLCI remains in a healthy uptrend. 

While intermittent profit-taking may continue after the strong rally, the underlying structure stays constructive, he noted. 

"A sustained move above the 1,750 level would likely pave the way for the next leg higher, while any pullbacks toward support are expected to be orderly and corrective rather than trend-changing. 

"As such, we anticipate the FBM KLCI to trend within the 1,730-1,760 range next week," he said.

The local market traded higher at the beginning of this week, went through profit-taking on Wednesday and Thursday, before rebounding at the end of the week on renewed buying interest. 

Bursa Malaysia surpassed its highest level in more than seven years on Tuesday at 1,771.25, supported by strong buying interest in blue-chip stocks from both local institutional and foreign investors.

The index surpassed its previous peak of 1,740.59 on Oct 17, 2018.

Besides, the strengthening of the ringgit further lifted the overall market sentiment. 

On Wednesday, the ringgit rebounded to 3.9175 against the US dollar, marking its strongest closing level since April 2018.

On a year-on-year basis, the local currency has appreciated 10.77 per cent against the greenback.

At 5 pm Friday, the FTSE Bursa Malaysia KLCI (FBM KLCI) soared 24.08 points or 1.40 per cent to 1,744.07 from last Friday’s close of 1,719.99. 

On a Friday-to-Friday basis, the FBM KLCI rose by 20.89 points to 1,740.88 from 1,719.99 a week earlier.

On the index board, the FBM Top 100 Index expanded 106.22 points to 12,562.02 and the FBM Emas Index advanced 85.45 points to 12,745.99.  

In contrast, the FBM Mid 70 Index decreased 52.64 points to 17,509.58, the FBM Emas Shariah Index shed 34.33 points to 12,275.32, and the FBM ACE Index tumbled 182.05 points to 4,723.00.

Sector-wise, the Financial Services Index surged 707.01 points to 21,510.18, the Energy Index slid 10.45 points to 758.93, the Plantation Index eased 5.21 points to 8,364.56, and the Industrial Products and Services Index edged down 0.93 of-a-point to 175.56.

Weekly turnover advanced to 16.53 billion units worth RM20.33 billion from 15.10 billion units worth RM15.66 billion a week ago.

The Main Market volume increased to 9.76 billion units worth RM18.75 billion compared to 8.15 billion units worth RM14.27 billion previously.

Warrants turnover improved to 4.43 billion units valued at RM602.53 million from 4.34 billion units valued at RM529.99 million last week.

The ACE Market volume narrowed to 2.34 billion units valued at RM955.46 million from 2.60 billion units valued at RM847.79 million in the previous week.

-- BERNAMA