KUALA LUMPUR, Dec 26 — Bursa Malaysia is expected to rebound strongly next week, with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) set to test the psychological level of 1,700, amidst window-dressing activities and improved market sentiment.

Inter-Pacific Asset Management Sdn Bhd chief executive officer Datuk Nazri Khan Adam Khan said the key index is poised to march into the new year on a high note, riding on the ‘Santa Claus’ rally as investors turn bullish towards year-end.

"Traditionally, the last week of December and the first week of new year are the strongest weeks of the year, therefore I believe KLCI will move higher between 1,680 and 1,700,” he told Bernama.

He said the market sentiment would be positive due to rising commodity prices, stronger ringgit versus the US dollar, optimism over Covid-19 vaccine distribution in Malaysia next year, as well as a smooth free trade deal between Britain and the European Union.

Nazri Khan said the overall market volume would be thin in the next two weeks as a majority of institutional buyers would be inactive due to the holidays, but the market momentum would be supported by buying in the small-capitalisation stocks.

Bursa Malaysia started the week on a weak note as investors’ sentiment was affected by worries over the global economy outlook, and the risk appetite continued to drift away the following day on mounting concerns over the new Covid-19 strain in the United Kingdom and the weak oil prices.

Nevertheless, the local market snapped its losing streak on Wednesday as bargain-hunting emerged ahead of the long weekend break, on the promising news of Covid-19 vaccine delivery by pharmaceutical company, AstraZeneca, which is expected to take place in the first half of 2021.

However, the FBM KLCI reversed its gains on Thursday due to profit taking amidst the cautious market sentiment, before taking a break for Christmas yesterday.

On a Friday-to-Thursday basis, the benchmark FBM KLCI decreased 11.32 points to 1,641.17 on Thursday from 1,652.49 on Friday last week.

On the scoreboard, the FBM Emas Index fell 79.57 points to 11,810.92, the FBMT 100 Index erased 80.12 points to 11,569.93, the FBM 70 contracted 106.06 points to 15,112.54, and the FBM Emas Shariah Index reduced 51.29 points to 13,283.18.

However, the FBM ACE Index surged 209.65 points to 10,657.3.

Sector-wise, the Plantation Index bagged 57.48 points to 7,407.28, the Industrial Products and Services Index added 0.2 of-a-point to 175.89, while the Financial Services Index tumbled 164.63 points to 15,260.37.

The Energy Index shed 28.58 points to 879.47, the Healthcare Index gave up 29.95 points for 3,672.36, while the Technology Index trimmed 0.46 of-a-point to 67.41.

Weekly turnover decreased sharply to 28.99 billion units worth RM14.05 billion from 50.37 billion units worth RM26.15 billion last week.

Main Market volume plummeted to 17.26 billion shares valued at RM10.7 billion versus 32.40 billion shares valued at RM22.03 billion previously.

Warrants turnover, however, increased to 7.85 billion units worth RM364.77 million from 4.97 billion units worth RM804.71 million in the previous week. 

The ACE Market volume shrank to 9.52 billion shares valued at RM2.99 billion from 13.04 billion shares valued at RM3.31 billion previously. — Bernama