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KUALA LUMPUR: Bursa Malaysia is expected to increase next week to test the immediate resistance at 1,620 and the next resistance level at 1,650.
Phillip Capital Management, Asia-Pacific, Executive Vice President (Investments), Dr. Nazri Khan, Adam Khan Khan, said the short-term perspective suggested that the KLCI would remain above the key support level of 1,600 .
He said the positive overnight performance on Wall Street, Bank Negara Malaysia's overnight rate cut (OPR), rising commodity prices and easing trade tensions between the United States and China would bring a positive feeling next week.
"Although ongoing trade tensions have had a negative impact on the ring against the greenback, the local market remains attractive, with the capital market posting a net influx of RM 2.1 billion," he said.
Fundamentally, the local market continues to withstand external headwinds through diversified sources of growth.
"Our participation in the Belts and Roads Initiative will provide a long-term benefit to economic growth as a major catalyst for foreign direct investment and connectivity to the global marketplace.
"In the longer term, the lower RPO could be an important factor in stimulating the local economy in the second half of the year," he said.
Nazri Khan said that the OPR cuts and the revival of East Coast Rail Link and Bandar Malaysia projects would give a fresh breath of fresh air to economic growth.
He added that despite weak investment activity, the local market had grown 4.5% in the first quarter of 2019.
"This is partly due to the positive improvement of the agricultural sector and the private consumption of businesses. This gives a positive impact on the manufacturing sector, as well as on household spending, "he said.
In line with encouraging private sector spending, the BNM maintained its expectation that gross domestic product (GDP) would continue to grow between 4.3% and 4.8% this year.
He added that despite the niche between the United States and China, the local market remained attractive, given the net inflow of funds of RM 2.1 billion recorded on the capital market.
Nazri said the three consecutive wins of the S & P 500 over the course of the week showed calm vis-à-vis the current state of trade relations between Washington and Beijing.
"We believe that the US decision to effectively ban the Chinese phone maker Huawei from the US market has overshadowed the previous decision to impose import taxes on European-made cars" , did he declare.
Overall, the value of Bursa Malaysia was generally higher despite growing concerns about trade between the two countries.
From Friday to Friday, the FBM KLCI benchmark index has weakened by 4.91 points, to 1,605.36.
The FBM Emas index fell by 74.91 points to 11,300.05, the FBMT 100's index is depreciated by 68.25 points to 11,136.80 and the FBM index Emas Shariah was cleared 99.09 points to 11,451.34.
The FBM Ace Index lost 137.43 points to 4,395.14 and the FBM 70 lost 223.73 points to 13,855.32.
At the sectoral level, the financial services index fell by 3.31 points to 16,562.87, the plantation index fell by 154.78 points to 6,895.50 and the index of industrial products and services yielded 2.86 points to 163.82.
The weekly business figure declined slightly to reach 11.80 billion units, valued at 9.41 billion RM, compared with 12.71 billion units, valued at 9.87 billion yuan. RM, last Friday.
The main market volume was lower with 6.97 billion shares valued at RM 8.65 billion, compared to 8.02 billion shares valued at 8.85 billion.
Warrant sales declined to 1.67 billion units valued at RM 427.70 million, compared to RM 2.54 billion worth of RM 704.83 million. .
ACE market volume, however, was more than 3.22 billion shares worth RM 326.88 million, compared with 2.14 billion shares of value previous of 301.87 million.- Bernama
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