KUALA LUMPUR, Nov 12 — Bursa Malaysia is likely to move higher next week, supported by returning global investors, with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) moving between 1,460 and 1,480, said a dealer.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the strong support from foreign institutions is expected to lift the local bourse with buying momentum to continue next week.

"We expect the FBM KLCI to see immediate resistance at 1,490, with support at 1,420,” he told Bernama.

Meanwhile, SPI Asset Management managing partner Stephen Innes said Bursa Malaysia stocks surged in a rising tide lifts-all-boats scenario this week as slower-than-projected United States inflation galvanised bets the Federal Reserve could downshift its aggressive rate-hike path.

According to news report, the US inflation eased to 7.7 per cent in October 2022 compared with a reading of 8.2 per cent in September 2022, raising hopes that price hikes have begun to slow down.

Furthermore, Innes said Malaysia’s newly-released positive economic data for the third quarter (Q3) of 2022 also contributed towards the gain this week.

Bank Negara Malaysia said Malaysia’s economy grew by 14.2 per cent in Q3 2022 supported by continued expansion in domestic demand, firm recovery in the labour market, robust electrical and electronics (E&E) as well as non-E&E exports and ongoing policy support.

"These have been big drivers for today’s gains,” he said.

For next week, he said news on China scrapping Covid flight suspensions and reduction on quarantine for inbound travellers would be the focus among investors.

"Since investors are growing more sensitive to the reopening news than the lockdowns, there is finally some room for fine-tuning Covid-19 controls. This shift in policy is great news for the local market,” he said.

He also said the stronger ringgit would be another important driver for local stocks.

"The US dollar’s rise over the past year has left Malaysian markets increasingly exposed to capital outflow, so with the fall in US inflation, that external vulnerability has been eased and should open the door to inbound investment given the softer greenback,” he said.

On Friday, the FBM KLCI strengthened 1.27 per cent, or 18.47 points, to 1,468.21 from Thursday’s close of 1,449.74.

Compared to a week earlier, the key index rose 29.93 points from 1438.28 previously.

On the index board, the FBM Emas Index gained 199.41 points to 10,416.90, the FBM 70 earned 229.89 points to 12,372.02 and the FBMT 100 Index was 202.67 points higher to 10,151.59.

The FBM Emas Shariah Index was firmer by 202.49 points to 10,529.58 and the FBM ACE added 174.13 points to 5,093.31.

Sector-wise, the Financial Services Index was 260.54 points up to 16,353.23, the Industrial Products and Services Index widened 5.62 points to 179.40, the Plantation Index edged up 81.71 points to 6,902.73, however the Energy Index lost 0.96 of-a-point to 724.32.

During the trading week, weekly turnover increased to 15.83 billion units worth RM8.83 billion from 13.37 billion units worth RM8.89 billion in the previous week.

The Main Market volume was higher at 10.75 billion shares valued at RM7.62 billion against last week’s 9.03 billion shares valued at RM7.61 billion.

Warrant volume climbed to 1.67 billion units worth RM358.37 million from 1.62 billion units worth RM325.14 million previously.

The ACE Market volume rose to 3.38 billion shares valued at RM840.71 million from 2.70 billion shares valued at RM955.85 million. — Bernama