KUALA LUMPUR, Dec 2 ― Bursa Malaysia is anticipated to experience some portfolio realignments and window dressing activities, hence the benchmark index is likely to trend higher next week as the market enters the month of December, said an analyst.

Rakuten Trade equity research vice-president Thong Pak Leng said technically, the benchmark index staged a rebound and broke out from the one-week bullish flag pattern with a long white candle yesterday.

"The index has broken the 20-day exponential moving average (EMA) of 1,453 today, hence, we believe there is upward momentum in the near term,” he told Bernama.

Notably, the next resistance levels are identified at 1,465 and the psychological mark of 1,500.

"If the FBM KLCI surpasses the 1,465-resistance line, we foresee additional upward potential.

"As such, we anticipate the index to trend within the 1,445-1,465 range for next week, with immediate support at 1,445 followed by 1,430,” he added.

Meanwhile, SPI Asset Management managing director Stephen Innes said decelerating inflation, US Federal Reserve (Fed) cuts and above-expectation growth may be a constructive backdrop for stocks.

However, he said falling costs indicate a reversal of profit-led inflation, suggesting corporate margins may have peaked.

"So perhaps earnings, not lower interest rates, will need to do the heavy lifting of Malaysian stocks in the future as there are many Fed cuts in the pipeline.

"I think next week we will need to see a broader US market rally to encourage foreign investors to move into perceived riskier Malaysian markets, but we are more inclined to expect range-trading to persist,” Innes said.

Meanwhile, on the local front, five Mobile Network Operators (MNOs) including CelcomDigi Bhd (CDB) and Maxis Bhd on Friday entered into conditional share subscription agreements (SSAs) with Digital Nasional Bhd (DNB) and Minister of Finance, Incorporated (MoF Inc) to subscribe for equity stakes in DNB.

The signing of the SSAs will see each MNO injecting approximately RM233 million, which will be utilised to meet DNB’s funding requirements.

DNB has achieved 73 per cent coverage of populated areas (CoPA) in Malaysia as at Oct 31, 2023 and is targeting to reach its 80 per cent CoPA target by the end of 2023.

At the close of trading on Bursa Malaysia on Friday, CelcomDigi decreased 10 sen to RM4.24 with 34.51 million shares traded while Maxis added six sen to RM3.96 with 994,500 shares changing hands.

On a Friday-to-Friday basis, the FBM KLCI grew 2.46 points to end the week at 1,456.38 versus 1,453.92 a week ago.

On the index board, the FBM Emas Index shed 43.08 points to 10,705.65, the FBMT 100 Index slid 36.11 points to 10,394.78, and the FBM Emas Shariah Index shaved off 66.43 points to 10,877.58.

The FBM 70 Index slumped 283.69 points to 14,048.05 while the FBM ACE Index declined 72.27 points to 5,133.16.

Sector-wise, the Financial Services Index slid by 4.75 points to 16,379.57, the Energy Index was 19.25 points weaker at 815.6, but the Plantation Index perked 59.11 points to 6,990.41, while the Industrial Products and Services Index was down by 2.12 points to 171.99.

Bursa Malaysia ended the week with a firmer turnover of 17.66 billion units worth RM13.94 billion versus 17.06 billion units valued at RM10.28 billion in the preceding week.

The Main Market volume fell to 10.85 billion shares valued at RM12.40 billion against 11.68 billion shares worth RM8.80 billion in the previous week.

Warrants turnover improved to 3.03 billion units valued at RM361.80 million from 2.99 billion units valued at RM380.72 million last week.

The ACE Market volume strengthened to 3.76 billion shares worth RM1.17 billion compared to 3.34 billion shares worth RM1.10 billion previously. ― Bernama