The FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to trade higher next week, while pushing the resistance level of 1,800, in riding a possible breakthrough in the US debt-ceiling crisis
and pre-UMNO election rally.
Affin Investment Bank vice president and head of retail research, Dr Nazri Khan anticipates that gains would be led by the Budget 2014 driven sectors, namely finance, construction, and technology blue chips.
He said optimism over the progress in talks in Washington with President Barack Obama offering to consider a Republican deal to extend the debt ceiling for six weeks, will boost sentiment next week.
"This is in addition to bargain hunting, while playing 'catch up' to the strong US/Europe rally," he told Bernama.
Meanwhile, the upcoming Budget 2014 announcement and launch of two of the biggest 2013 initial public offerings (IPOs) by UMW Oil Gas Bhd and Westport Bhd, should also be market positive.
"We expect the Budget 2014 to implement much delayed-projects and structural reforms to reduce the deficit and national debt. This should raise the confidence of investors and attract more foreign fund inflows to Bursa Malaysia," Nazri said.
Bursa Malaysia and its subsidiaries will be closed on Tuesday in conjunction with the Hari Raya AidilAdha holiday and resume trading on Wednesday.
For the week just-ended, the movement of the local bourse movement was influenced by concerns over the domestic problems of the US and Malaysia's lower gross domestic product growth forecast for 2013 and 2014 by the World Bank.
The nomination of Janet Yellen as the new chief of the US Federal Reserve also had some impact.
On a Friday-to-Friday basis, the FBM KLCI rose 9.19 points to 1,785.75 from 1,776.56.
The Finance Index surged 176.33 points to 16,691.8, the Industrial Index added 6.64 points to 3,068.06, and the Plantation Index rose 10.67 points to 8,360.49.
The FBM Emas Index chalked up 79.98 points to 12,431.66, the FBMT100 advanced 74.24 points to 12,163.41, the FBM Mid 70 Index soared 125.97 points to 14,202.84, and the FBM ACE Index climbed 125.97 points to 5,503.57.
Weekly volume slipped to 8.34 billion shares valued at RM7.25 billion from the 8.94 billion shares valued at RM8.33 billion registered previously.
The main market turnover fell to 5.61 billion units worth RM6.71
billion from 6.02 billion units worth RM7.65 billion.
Volume on the ACE Market declined to 2.56 billion shares valued at RM515.9 million from last week's 2.69 billion shares valued at RM644.02 million.
Warrants narrowed to 134.03 million units worth RM13.29 million against the 178.66 million units worth RM17.29 million transacted previously.-- Bernama