Fri. Nov 18th, 2022

KUALA LUMPUR (March 6): The FBM KLCI is likely to trade higher next week on the back of energy and finance counters due to stronger oil prices and Bank Negara Malaysias decision to keep the overnight policy rate (OPR) at 1.75%, according to an analyst.  
Axi chief global market strategist Stephen Innes said the benchmark index would likely trade between 1,580 and 1,610 next week, well supported by banking stocks that benefited from the recent decision by the central bank in its second Monetary Policy Committee meeting.
“The KLCI is well weighted to benefit from banking and energy,” Innes told Bernama, adding that the decision made by the Organization of the Petroleum Exporting Countries (OPEC)+ allies to extend their production cuts shored up oil prices yesterday .
While I expect oil prices to remain firm, we could see a more dovish pushback from the US Federal Reserve (Fed) that could cap rising Treasury yields.
But even should these counters remain stable or working as a trade-off against one another, I still think the reopening [of the economy] and Covid-19 vaccine vibe should carry the day, added Innes.
Slightly weak sentiment clouded the local bourse, weighed down by glove stocks for the week just ended. However, the KLCI strengthened by 18.86 points to end the week, breaching the 1,600 level, lifted by gains in banking stocks and a rebound in glove stocks.
On a Friday-on-Friday basis, the benchmark KLCI rose 22.37 points to 1,600.12 from last weeks 1,577.75.
On the scoreboard, the FBM Emas Index increased 81.09 points to 11,695.26 and the FBMT 100 Index advanced 96.57 points to 11,398.57.
The FBM 70 decreased 112.52 points to 15,348.65, the FBM ACE Index shrank 465.53 points to 10,407.99 and the FBM Emas Shariah Index erased 43.32 points to 12,935.83.
Sector-wise, the Financial Services Index strengthened 450.40 points to 15,452.74, Industrial Products and Services Index inched down half a point to 184.84 and the Plantation Index receded 13.91 points to 7,163.42.
The Energy Index added 19.62 points to 951.51, the Technology Index fell 3.98 points to 84.99 and the Healthcare Index gave up 82.25 points to 3,109.42.   
Turnover declined to 51.97 billion units worth RM29.22 billion from 57.72 billion units worth RM30.94 billion in the previous week.
Main Market volume dwindled to 32.32 billion shares valued at RM24.22 billion versus 36.43 billion shares valued at RM26.85 billion last week.
Warrant turnover rose to 2.41 billion units worth RM415.24 million against 2.34 billion units worth RM406.84 million previously.
The ACE Market volume fell to 17.24 billion shares valued at RM4.58 billion from 18.91 billion shares valued at RM13.41 billion the week earlier.
Read also:KLCI futures expected to retest 1,600 level next week