KUALA LUMPUR: Bursa Malaysia closed the week on a strong note, with gains that reflected the positive performance of regional markets amid expectations that the US Federal Reserve might begin cutting interest rates next month.
At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose by 1.53 per cent, or 25.25 points, to 1,678.80, up from Thursday's close of 1,653.55.
The broader market also saw positive momentum, with 771 gainers outnumbering 421 losers, while 437 counters remained unchanged.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng said the FBM KLCI demonstrated a strong upward trend, trading significantly above both the 20-day and 50-day exponential moving average (EMA) lines, signalling solid bullish momentum in the short term.
He added that the increasing gap between the index and these moving averages further validates the strength of the ongoing uptrend.
"On the other hand, the FBM KLCI might face resistance at 1,680 and the psychological 1,700 level. Conversely, the crucial support levels are at 1,635 followed by 1,620. "
"Falling below these EMAs could suggest a weakening of the bullish momentum and a potential shift towards consolidation or a bearish trend," he said.
Thong said the outlook remains positive as long as the index stays above its critical support levels, but caution is advised as the market nears overbought territory.
"As such, we anticipate the FBM KLCI to trend within the range of 1,670-1,700 for next week," he adds.