Extended gains imminent across Bursa
Published on: Monday, March 30, 2020
By: Bernama
Photo: Bernama
Kuala Lumpur: Bursa Malaysia is expected to continue its upward momentum, erasing the losses recorded in earlier weeks as reversal through continuation pattern in imminent.An analyst said the FTSE Bursa Malaysia KLCI (FBM KLCI) had managed to breach the 1,350 immediate resistance level, showing that the key index could extend its gains further.
ADVERTISEMENT
“Continuation pattern is seen via strong uptrend as the index closed higher for four days straight. Buoyed by the RM250 billion Prihatin Rakyat economic stimulus package announced on Friday, small and medium cap stocks are expected to see an uptick in investment interest,” she said.
On the technical front, the support level for this week is now placed at 1,330 with the immediate resistance of 1,370.
She said that the equity market would continue to be influenced by the benchmark oil price.
“However, with the current price having already reached a record low, it would not affect the market much unless it slumps to below US$25 per barrel,” she said.
ADVERTISEMENT
As at Friday’s close, the benchmark Brent crude was traded at US$28.16 per barrel.
She added that for the week, net inflow had surpassed net outflow by about RM300 million but the market was still far from gaining back the losses since early this year.
ADVERTISEMENT
“Since early this year, it had worsened during the duration of political crisis, oil slump and worsening Covid-19. Billions of ringgit have exited the market which reached the lowest in 88 months with more than more than RM150 billion of market capitalisation erased.
“The bullish momentum is there, and with the correct measures taken, the index would have a bright chance of rebounding despite the Covid-19 global situation,” she said.
Over the week, the gains on Bursa Malaysia also tracked other Asean markets as the FTSE Asean 40 records a strong performance, increasing more than four per cent to close at 7,581.14 points.
As for Bursa Malaysia’s performance, finance counters recorded an astounding gains, erasing previous losses to close 483.43 points higher, backed by renewed interest in blue-chip finance stocks such as Maybank and Public Bank.
On a Friday-to-Friday basis, the FBM KLCI rose 39.81 points to 1,343.09 from 1,303.28 previously.
On the scoreboard, the FBM Emas Index rose 343.52 points to 9,186.30, the FBMT 100 Index increased 332.93 points to 9,122.23 and the FBM Emas Shariah Index appreciated 344.24 points to 10,008.38.
The FBM 70 expanded 647.57 points to 10,535.84 and the FBM ACE Index added 247.83 points to 3,766.95.
Sector-wise, the Industrial Products and Services Index inched up 4.54 points to 104.29 and the Plantation Index was 196.00 points higher at 6,133.63.
Weekly turnover fell to 18.09 billion units worth RM12.32 billion compared with 21.61 billion units worth RM17.35 billion in the previous week.
Main Market volume declined to 13.46 billion shares worth RM11.34 billion compared with 16.73 billion shares valued at RM16.46 billion.Stay up-to-date by following Daily Express’s Telegram channel.
Daily Express Malaysia
