Bursa Malaysia could near 1,650 with window-dressing and positive sentiment, foreign investors set to return

KUALA LUMPUR, Dec 28 — Year-end window dressing activities are expected to drive Bursa Malaysia’s continued uptrend next week, fuelled by positive sentiment, according to UOB Kay Hian Wealth Advisors Sdn Bhd.

Its head of investment research, Mohd Sedek Jantan, remained optimistic that the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) could edge closer to the company’s in-house 2024 target of 1,650, following the index rally this week to close above the 1,620 resistance level.

“This expectation is underpinned by the anticipated return of foreign investors after the Christmas holidays, alongside positive factors such as an improving global economic outlook and potential easing of monetary policy,” he told Bernama.

He noted the recent strong performance was primarily driven by power and utility stocks, likely bolstered by year-end window-dressing activities by portfolio managers.

“Notably, the rally occurred without significant foreign investor participation, underscoring the resilience of domestic market drivers,” he added.

For the holiday-shortened week just ended, the FBM KLCI was higher amid continuous buying interest, taking cues from the upbeat performance on Wall Street and regional markets.

On a Friday-to-Friday basis, the key index was up by 36.73 points to 1,628.14 compared to 1,591.41 in the previous week.

The FBM Emas Index gained 258.81 points to 12,481.75, the FBMT 100 Index advanced 256.57 points to 12,165.17, and the FBM Emas Shariah garnered 267.28 points to 12,489.09.

The FBM 70 Index expanded 328.20 points to 18,705.67 and the FBM ACE Index was 81.52 points better at 5,350.17.

By sector, the Financial Services Index climbed 338.61 points to 19,041.96, the Plantation Index added 105.74 points to 7,603.01, and the Healthcare Index jumped 41.54 points to 2,378.95.

The Technology Index put on 1.68 points to 65.18, the Energy Index perked up 20.54 points to 824.65, and the Industrial Products and Services Index edged up 4.41 points to 174.67.

Turnover tumbled to 9.72 billion units worth RM7.52 billion compared with 15.30 billion units worth RM13.97 billion in the previous week.

The Main Market volume slipped to 5.01 billion units valued at RM6.71 billion compared to 8.10 billion units valued at RM12.79 billion last week.

Warrants turnover declined to 1.89 billion units worth RM243.54 million against 4.31 billion units worth RM450.37 million previously.

The ACE Market volume narrowed to 2.10 billion units valued at RM565.86 million versus 2.22 billion units valued at RM731.38 million last week. — Bernama