KUALA LUMPUR: Bursa Malaysia is expected to move upwards, supported by the firmer ringgit against the US dollar and the continuation of foreign fund inflow, said a dealer.
Affin Hwang Investment Bank Vice-President and Head of Retail Research Datuk Dr Nazri Khan Adam Khan said the country received a net fund inflow of RM10 billion this year after experiencing outflows in the last three years.
He said year to date, the ringgit appreciated about 10% against the greenback, while Bursa Malaysia grew by eight percent.
“I expect the FTSE Bursa Malaysia KLCI (FBM KLCI) to move up to 1,780 level before the first week of 2018 as investors are snapping out stocks before year-end,” he told Bernama.
Besides that, Nazri Khan said recovery in commodity prices, including Brent crude and crude palm oil (CPO) also translated into a strong sentiment for Malaysia. “Against these backdrop of strength, I believe the local market should be able to play catch-up with the rest of the world,” he told Bernama.
Nazri Khan also expects economic growth to remain healthy with a five percent growth expected next year. On the external front, he said the major US tax cuts approved this week were expected to spur American economy, besides having a spillover effect on emerging markets like Malaysia. On a sectoral basis, the Finance Index rose 8.32 points to 16,594.83, the Plantation Index improved 90.29 points to 7,900.40, while the Industrial Index advanced 12.37 points to 3,192.53.
