KUALA LUMPUR: The upward momentum on Bursa Malaysia is likely to continue next week as sentiment in the market remains positive backed by favourable external developments, a dealer said.
He said the local bourse would continue to see support from foreign investors, who were net buyers to the tune of RM253.53 million last week and RM231.49 million on Monday.
“Market players will closely watch the developments on the US interest rate as the recent non-farm payroll data, which only grew by 27,000 jobs in May, the lowest in nine years, signalled that the economy is actually stumbling.
“People are betting that there will be an interest rate cut by the US Federal Reserve and this will spur equities,” the dealer told Bernama.
He said that developments involving US President Donald Trump’s Mexico tariff threat would also weigh in on market sentiment next week.
Meanwhile, JF Apex Securities head of research Lee Chung Cheng said the support and resistance levels for next week will stand at 1,625 and 1,660, respectively.
During the holiday-shortened trading week, Bursa Malaysia started edgy on the back of weak market sentiment following Trump’s trade threats on Mexico and India, coupled with weak economic data from China.
Trump had said he would impose a 5% tariff on all imported goods from Mexico from Monday, a tax that would “gradually increase” until the flow of undocumented immigrants from across the border stopped.
Appetite for riskier assets softened on Hari Raya eve, with the FTSE Bursa Malaysia KLCI (FBM KLCI) retreating from its six-day winning streak amid weak support from local investors prior to the holiday season.
After being closed for two days, the key index rebounded on Friday following hopes for a US rate cut, the easing of Trump’s Mexico tariff threat worries, as well as better oil prices.
On a Friday-to-Friday basis, the benchmark FBM KLCI slipped 1.43 points to 1,649.33.
Weekly turnover shrank to 4.15 billion units valued at RM4.08 billion from 10.64 billion units worth RM12.87 billion last week.
