Bursa expected to trend higher next week

Bursa expected to trend higher next week
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KUALA LUMPUR (June 4): Bursa Malaysia is expected to move higher next week, supported by returning global investors amid easing Covid-19 restrictions globally, said an analyst.

Inter-Pacific Asset Management Sdn Bhd executive director and fund manager Datuk Nazri Khan said some international fund managers are betting that the worst is over.

He said global investors are returning to Asian markets after a widespread sell-off earlier this year on signs of reduced worldwide Covid-19 restrictions, improved geopolitical implications of Russia’s war in Ukraine, and the smaller effects of regulatory crackdowns.

“We believe the worst may be over for the equities market and it is a good sign to invest on a historical basis as Bursa Malaysia fell close to 10% in the last six months, while US stocks fell more than 30% in six months.

“We can say that global stocks are making strong gains despite the negative external environment,” he told Bernama.

The FBM KLCI closed lower on Friday after a choppy trading session, with the index closing at 1,537.83, erasing 12.07 points or 0.77%.

Market breadth, however, was positive with gainers leading losers 494 to 366.

For the week just ended, the local bourse was mixed amid steady performance in regional markets and a cautious sentiment on Wall Street.

On a weekly basis, the FBM KLCI slipped 8.94 points to end the week at 1,537.82 from 1,546.76 in the previous week.

On the index board, the FBMT100 Index declined 4.95 points to 10,702.73, the FBM Emas Shariah Index dipped 27.4 points to 11,364.49, the FBM Emas Index increased 1.82 points to 11,012.94, the FBM ACE jumped 125.25 points to 5,271.95, and the FBM 70 strengthened 225.63 points to 13,324.19.

Sector-wise, the Plantation Index lost 98.09 points to 7,911.63, the Industrial Products and Services Index went up 0.36 of-a-point to 199.77 and the Energy Index narrowed by 3.09 points to 810.81.

The Financial Services Index fell 25.62 points to 16,618.79, the Healthcare Index shed 48.42 points to 1,878.7, and the Technology Index inched up 3.26 points to 69.71.

Weekly turnover was slightly lower at 14.14 billion units valued at RM13.99 billion against 15.03 billion units valued at RM9.77 billion last week.

Main Market volume widened to 10.53 billion shares worth RM13.14 billion versus 9.99 billion shares worth RM8.63 billion in the previous week.

Warrants volume went down to 1.55 billion units valued at RM288.17 million against 1.96 billion units valued at RM385.97 million previously.

ACE Market volume trimmed to 2.05 billion shares worth RM556.59 million from 2.91 billion shares worth RM745.96 million the week before.