MALAYSIA'S THIRD QUARTER GDP, EXTERNAL FACTORS SEEN LIFTING FBM KLCI NEXT WEEK

KUALA LUMPUR, Nov 9 (Bernama) -- The FTSE Bursa Malaysia KLCI (FBM KLCI) is anticipated to continue its upward trajectory next week, extending the positive momentum seen this week as it traded within the 1,635 to 1,645-point range.

UOB Kay Hian Wealth Advisors' head of investment research, Mohd Sedek Jantan, said external factors will continue to bolster the FBM KLCI’s performance.

“Recent influential developments included the recent Republican election victory in the United States, rate cuts from both the US Federal Reserve and the Bank of England, and China’s ongoing commitment to supportive monetary policy to drive economic recovery.

“While these factors currently provide a favourable tailwind for the index, it is worth noting that market reactions to election results are often short-lived,” he told Bernama.

Although it remains too early to assess, Mohd Sedek said the foreign policy direction of the upcoming Trump administration is anticipated to maintain continuity in trade policies focused on cost reduction and energy affordability for American industries.

“Although these measures could present certain risks to global markets, they are largely within business expectations, having been anticipated well in advance of the election. Markets tend to react negatively to unexpected developments; hence, as long as these policies remain within forecast parameters, any adverse impact should be minimal,” he added.

Mohd Sedek also noted that the Department of Statistics Malaysia (DOSM) will release the country's third-quarter gross domestic product (GDP) data next Friday.

“We expect this figure to closely align with the advance estimate of 5.3 per cent. Any GDP reading above 5.0 per cent should enhance investor sentiment, reinforcing confidence in Malaysia’s economic resilience,” he added.

Rakuten Trade Sdn Bhd vice president of equity research Thong Pak Leng reckons next week’s stock market outlook hinges on signals from the US political landscape.

“Once stability is established, the outlook should become clearer. In the near term, we expect stronger upward momentum and anticipate the FBM KLCI index to fluctuate within the 1,610-1,640 range next week,” he added.

On a Friday-to-Friday basis, the FBM KLCI added 17.26 points to 1,621.24 from 1,603.98 in the previous week.

The FBM Emas Index gained 137.52 points to 12,265.86, the FBM 70 Index advanced 186.46 points to 17,865.39 and the FBMT 100 Index rose 126.67 points to 11,966.46.

The FBM Emas Shariah Index climbed 129.36 points to 12,231.80, and the FBM ACE Index added 148.57 points to 5,144.92.

By sector, the Financial Services Index gained 252.26 points to 19,257.02, the Plantation Index surged 175.21 points to 7,631.58, the Healthcare Index added 31.59 points to 2,103.30 and the Technology Index gained 2.85 points to 61.15.

The Energy Index slipped 4.72 points to 834.08 and the Industrial Products and Services Index edged down 0.96 of-a-point to 172.61.

Turnover rose to 14.87 billion units worth RM12.83 billion compared with 9.60 billion units worth RM9.88 billion in the previous week.

The Main Market volume increased to 7.63 billion shares valued at RM11.09 billion from 5.30 billion shares valued at RM8.88 billion last week.

Warrant turnover increased to 4.53 billion units worth RM691.43 million compared with 2.55 billion units worth RM396.20 million previously.

The ACE Market volume soared to 2.71 billion shares valued at RM1.03 billion versus 1.71 billion shares valued at RM598.99 million last week.

-- BERNAMA