KUALA LUMPUR: Bursa Malaysia is anticipated to move between 1,610 and 1,632 range next week as technical indicators showed that the FTSE Bursa Malaysia KLCI (FBM KLCI) has pulled further away from all exponential moving averages (EMAs) and the 20-day EMA, said an analyst.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index's momentum suggested a potential push towards the next resistance level at 1,632.
"A decisive break above this level could signal further gains. On the downside, immediate support is now at 1,610. As such, we expect the index to hover within the 1,610-1,632 range next week," he told Bernama.
Meanwhile, SPI Asset Management managing director Stephen Innes said he is rather optimistic about the Malaysian equity market currently.
"Malaysia's economy is on a roll, with growth accelerating towards the 5.0 per cent mark this year - hitting the top end of the country's projection."
He said consumer spending and booming exports have turbocharged the economy, especially in the second quarter (2Q), where data showed a solid 5.9 per cent gross domestic product (GDP) growth year-on-year.
"That's even a notch higher than the earlier estimate of 5.8 per cent. When you break it down, the economy grew by 2.9 per cent sequentially from the previous quarter, which is nothing short of impressive.
"Given this strong economic performance, there is not much on the local front that could derail the market. This kind of growth lays down a firm foundation for continued bullish momentum," said Innes.
Besides, he said, if the United States (US) economy could keep the recession wolf at bay, there is a real shot that Bursa Malaysia could climb to the 1,620-1,630 range next week.
"With local fundamentals looking rock-solid and the global winds blowing in our favour, I am betting we are in for some more upward movement, as long as nothing throws a wrench in the works from the US side of things," Innes added.
On a Friday-to-Friday basis, the FBM KLCI increased by 27.85 points to 1,623.90 from last week's 1,596.05.
On Bursa Malaysia's index board, the FBM Emas Index climbed 159.96 points to 12,335.13, and the FBMT 100 Index expanded 168.50 points to 11,976.09.
The FBM Emas Shariah Index gained 159.96 points to 12,335.13, the FBM 70 Index rose 114.66 points to 17,843.65, and the FBM ACE Index garnered 21.32 points to 5,398.98.
Sector-wise, the Financial Services Index leapt 365.89 points to 18,419.72, the Industrial Products and Services Index bagged 2.50 points to 183.79, the Energy Index improved 30.46 points to 952.10, and the Plantation Index soared 110.08 points to 7,184.00.
For the week just ended, turnover tumbled to 17.67 billion units valued at RM13.44 billion versus 29.29 billion units valued at RM23.34 billion in the preceding week.
The Main Market volume dropped to 9.89 billion shares worth RM11.85 billion against 18.54 billion shares worth RM21.18 billion a week ago.
Warrants turnover dwindled to 5.21 billion units valued at RM680.11 million from 6.61 billion units valued at RM826.77 million last week.
The ACE Market volume slid to 2.08 billion shares worth RM907.09 million from 4.11 billion shares worth RM1.32 billion previously.