The upward momentum on Bursa Malaysia is likely to continue next week as sentiment in the market remains positive backed by favourable external developments, a dealer said.
He said the local bourse would continue to see support from foreign investors, who were net buyers to the tune of RM253.53 million last week and RM231.49 million on Monday this week.
“Market players will closely watch the developments on the US interest rate as the recent non-farm payrolls data, which only grew by 27,000 jobs in May, the fewest in nine years, signalled that the economy is actually stumbling.
“People are betting that there will be an interest rate cut by the US Federal Reserve and this will spur equities,” he told Bernama, adding that developments involving US President Donald Trump’s Mexico tariff threat would also weigh on sentiment next week.
Meanwhile, JF Apex Securities head of research Lee Chung Cheng said the support and resistance levels for next week stood at 1,625 and 1,660, respectively.
During the holiday-shortened trading week, Bursa Malaysia started a bit edgy on the back of weak market sentiment following Trump’s trade threats on Mexico and India, coupled with weak economic data from China.
Trump had said that he would impose a five per cent tariff on all imported goods from Mexico from June 10, a tax that would “gradually increase” until the flow of undocumented immigrants from across the border stopped.
Appetite for riskier assets further softened on Tuesday, with FTSE Bursa Malaysia KLCI (FBM KLCI) retreating from its six-day winning streak amid weak support from the local investors as most of them were away for the Hari Raya Aidilfitri holiday season.
After being closed for two days, the key index rebounded yesterday following hopes for a rate cut by the United States, the easing of US President Donald Trump’s Mexico tariff threat worries, as well as better oil prices.
On a Friday-to-Friday basis, the benchmark FBM KLCI slipped 1.43 points to 1,649.33.
The FBM Emas Index eased 7.72 points to 11,580.42, the FBMT 100 Index trimmed 10.14 points to 11,440.42 and the FBM Emas Shariah Index shed 5.33 points to 11,790.44.
The FBM Ace Index gave up 35.28 points for 4,264.14 and the FBM 70 lost 13.21 points to 14,227.32.
Sector-wise, the Financial Services Index fell 19.18 points to 16,828.86, the Plantation Index erased 49.39 points to 6,873.47 but the Industrial Products and Services Index added 0.49 of-a-point to 160.54.
Weekly turnover shrank to 4.15 billion units valued at RM4.08 billion from 10.64 billion units worth RM12.87 billion last week.
Main Market volume decreased sharply to 2.77 billion shares valued at RM3.83 billion from 7.29 billion shares worth RM12.19 billion.
Warrants turnover tumbled to 798.82 million units valued at RM173.33 million from 2.08 billion units worth RM463.1 million.
The ACE Market volume dwindled to 583.22 million shares valued at RM70.19 million from 1.27 billion shares worth RM211.99 million previously.