Upward momentum for Bursa in the coming week

KUALA LUMPUR (Nov. 28): Following an unstable trading week due to Parliament’s 2021 budget vote that had caused market jitters, Bursa Malaysia is poised for upward momentum.

A broker said the uptrend momentum is eminent as the FMB KLCI level has returned to above 1,600 and the relative strength index is now above 50, indicating upside potential.

“The cyclical sectors are expected to be in demand in the coming week as market demand is expected to increase as a result of the automatic renewal of the credit moratorium for the lowest income bracket of 40% (B40) and on a case-by-case basis for the middle bracket. 40% (M40).

“This will further drive demand and ease the financial strain of those hard hit by the ongoing Covid-19,” she said.

Barring unforeseen circumstances, she said the FBM KLCI would be able to surpass its one-year high of 1,618.68.

On a 52-week motion chart, the index moved between 1,207.82 and the peak of 1,618.68.

During the week, the stock market was shocked by news of Top Glove Corp Bhd’s factory, where a large number of workers were infected with Covid-19.

The report saw shares fall by about 6% in two days, before rebounding Friday, driven in part by the company’s share buybacks.

Technology stocks also showed an upward trend, driven by stronger corporate earnings and market outlook, while energy showed a steady rise due to a stabilizing oil price.

The lower liners, meanwhile, remained under pressure as stocks are heavily impacted by any market development.

On a Friday-to-Friday basis, the FBM KLCI index gained 13.84 points.

On the scoreboard, the FBM Emas Index rose 78.15 points to 11,542.03, the FBMT 100 Index rose 74.27 points to 11,321.15 and the FBM Emas Shariah Index rose 47.14 points to 13,268.91.

The FBM 70 rose 5.62 points to 14,740.39 and the FBM ACE Index fell 564.04 points to 10,589.59.

Sector-wise, the Financial Services Index rose 212.78 points to 14,236.10, the Plantation Index 108.59 points to 7,235.89 and the Industrial Products and Services Index 2.30 points to 162.48.

The Technology Index rose 1.23 points to 64.93, while the Healthcare Index rose 6.72 points to 3,966.36.

Weekly sales fell to 45.97 billion units worth RM23.18 billion, from 65.45 billion units worth RM29.40 billion last week.

Main market volume fell to 20.46 billion worth RM17.16 billion from 32.66 billion shares worth RM21.85 billion.

Warrant sales fell to 3.30 billion worth RM586.75 million from 5.58 billion units worth RM 799.64 million in the previous week.

The ACE market volume shrank to 19.39 billion shares worth RM5.40 billion from 28.82 billion shares worth RM6.75 billion.

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