Bursa Malaysia’s bull run to continue
Inter-Pacific Securities Sdn Bhd Research head, Pong Teng Siew, said the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) would extend the upward trajectory, to reach the 1,826-level or even higher to 1,840- level.
“The composite index has strengthened and broke the 1,800 psychological level. So there is potential for further upside.
“On catalysts, there is strong talk that the election is coming soon, which provides strong impetus. This suggests buying cue for government linked companies and index-related stocks,” he told Bernama, adding the immediate support level is now located at 1,793 to 1,784.
Pong expects the rally would last for up to three months.
In addition, he believed 2018 would be a good year for the local bourse given the higher expectation that more companies were going for listing this year, including in the Leading Entrepreneur Accelerator Platform (Leap) Market.
Edra Power Holdings Sdn Bhd, Edotco Group Sdn Bhd and several other technology companies are expected to undertake their initial public offerings (IPO) this year.
“This year, IPO numbers may succeed last year’s,” Pong added.
On a Friday-to-Friday comparison, the FBM KLCI performed better, gaining 21.16 points to end the week at 1,817.97.
Although Bursa started the year weaker, as a result of post-window dressing and profit-taking, the momentum recovered on the second trading day onwards, fuelled by the spillover effects from the stronger Wall Street performance, rising oil prices and a stronger ringgit versus the US dollar.
Sentiment remained bullish until the end of the week, buoyed by growing optimism over robust global growth for this year, following the upbeat major economic data, including those in the US, Europe and China.
The market bull run has influenced the composite index to breach the 1,800 level on Thursday morning, a level that was last seen in 2015, as investors returned for some follow-up buying in Malaysia’s market, which has been badly hit in 2017 compared to its regional peers.
The persistent buying support pushed the key index to end Thursday firmer, at two-and-half-year high.
On the scoreboard, the FBM Emas Index surged 222.84 points to 13,165.41, the FBMT 100 Index soared 195.48 points to 12,809.68, the FBM Emas Shariah Index rose 307.82 points to 13,610.74, the FBM 70 jumped 407.07 points to 16,492.61, and the FBM Ace climbed 290.42 points to 6,893.97.
On a sectoral basis, the Finance Index advanced 224.9 points to 17,086.27, the Plantation Index bagged 101.39 points to 8,004.76, while the Industrial Index gained 111.48 points to 3,392.18.
In an active trading week, the total turnover swelled to 19.69 billion shares worth RM13.02 billion from 10.16 billion shares valued at RM8.46 billion billion last week.
Main Market volume to increased sharply to 12.12 billion shares worth RM11.77 billion from 5.89 billion shares valued at RM7.58 billion. Warrants turnover ballooned to 2.99 billion units worth at RM441.37 million against last week’s 999.13 million units valued at RM248.63 million.
The ACE Market widened to 4.54 billion shares worth RM786.69 million from 3.24 billion shares valued at RM615.99 transacted previously.
The market was closed on Monday for the New Year holiday. — Bernama
Source: Borneo Post Online