FBM KLCI LIKELY TO MAINTAIN MILDLY POSITIVE MOMENTUM NEXT WEEK

By Siti Noor Afera Abu

KUALA LUMPUR, Oct 25 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to maintain a mildly positive bias next week, supported by sustained buying interest above the 1,600 psychological level.

Berjaya Research Sdn Bhd head of research Kenneth Leong said the ongoing recovery momentum is likely to be underpinned by improved market sentiment, following the recent rebound and growing optimism over developments in US-China trade relations.

“Investors will be closely monitoring the slew of US corporate earnings releases for further cues on global risk appetite and earnings sustainability,” he told Bernama.

Meanwhile, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng expects market volatility to persist until greater clarity emerges from the anticipated trade discussions between the US and China next week.

“For now, we expect the benchmark index to move within the 1,600-1,630 range for next week,” he added.

Meanwhile, in the US, the consumer price index (CPI) for September released last night, marked the first major economic report since the government shutdown on Oct 1. 

According to reports, the latest data showed that the core CPI rose to 330.54 in September from 329.79 in the previous month, while the overall inflation rate eased to 3.0 per cent, which is lower than expected.

The CPI release is the final significant data point the US Federal Reserve will get before it makes its interest rate decision next week.

On a Friday-to-Friday basis, the FBM KLCI increased 6.09 points to 1,613.27 from last week’s 1,607.18.

For the index board, the FBM Emas Index added 66.09 points to 12,071.0, the FBMT 100 Index increased 61.57 points to 11,803.59, the FBM ACE Index improved 13.77 points to 5,292.66, the FBM 70 Index soared 163.04 points to 17,170.98, and the FBM Emas Shariah Index climbed 89.42 points to 12,146.69.

By sector, the Plantation Index increased 48.43 points to 7,909.29, the Industrial Products and Services Index perked up 0.86 of-a-point to 171.91, the Energy Index firmed 2.39 points to 791.32, and the Financial Services Index garnered 12.19 points to 18,204.63.

Weekly turnover tumbled to 13.53 billion units worth RM9.98 billion compared with 18.78 billion units worth RM16.18 billion in the previous week.

The Main Market volume shrank to 6.91 billion units worth RM8.65 billion from 10.80 billion units worth RM14.53 billion previously.

Warrants turnover declined to 3.81 billion units valued at RM562.09 million versus 5.39 billion units valued at RM641.92 million in the preceding week.

The ACE Market volume slipped to 1.89 billion units valued at RM755.22 million compared with 2.58 billion units valued at RM992.03 million a week ago.

-- BERNAMA