The FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to trend higher next week, boosted by positive economic data in the US and the anticipation of positive surprises from the coming UMNO general assembly and Budget 2014.
Affin Investment Bank vice president and head of retail research, Dr Nazri Khan, said the FBM KLCI could be ripe for a corrective rebound as the key index was already on a five-day losing streak.
"Further strength above 1,780 support level should keep the bulls in control and points to a quick rally towards 1,800 resistance level," he told Bernama.
Nazri said the market sentiment would get short-term relief from the latest economic data which showed that the number of Americans filing first-time claims for unemployment benefits had fallen to the lowest level in six years suggesting improving US economy and jobs market.
"This is also helped by the reports of possibly lower 2014 Japanese corporate tax rates and talk that the world largest Japanese Government Pension Investment Fund might buy more equities in the region," he said.
Meanwhile, positive surprises from the coming UMNO general assembly and Budget 2014 slated on October 19 and 25 respectively should draw more bulls back into bourse.
On a Friday-to-Friday basis, the FBM KLCI eased 25.67 points to 1,776.16 from 1,801.83 last Friday.
The Finance Index dropped 452.45 points to 16,577.82, Industrial Index fell 14.96 points to 3,034.31 and the Plantation Index eased 15.16 points to 8,318.74.
The FBM Emas Index lost 145.12 points to 12,349.30 and FBM Mid 70 Index fell 74.05 points to 14,409.23.
The FBM ACE Index, however, surged 211.22 points to 5,571.17.
Weekly volume rose to 10.636 billion billion shares valued at RM9.17 billion from 7.284 billion shares valued at RM8.41 billion last week.
The main market turnover increased to 7.490 billion units worth RM8.494 billion from 5.759 billion units worth RM8.106 billion last Friday.
Volume on the ACE Market rose to 2.898 billion shares valued at RM659.78 million from 1.440 billion shares valued at RM219.64 million last week.
Warrants increased to 220.267 million units worth RM19.829 million against 183.403 million units worth RM23.315 million previously.-- Bernama