KUALA LUMPUR (April 3): The benchmark FBM KLCI is likely to breach the 1,600 level next week in line with broader optimism about the US economy and an expected bounce in commodity prices, said an analyst.
Axi chief global markets strategist Stephen Innes said, however, the key index would likely be weighed down by glove stocks due to improving global vaccination rates that would lessen demand for medical items such as gloves.
“The glove makers left a negative footprint this week, while other sectors should improve, like banking as well as oil and gas stocks,” he told Bernama in an email interview.
Glove stocks took a beating on Wednesday after the US Customs and Border Protection (CBP) directed its personnel at all US ports of entry to begin seizing disposable gloves produced in Malaysia by Top Glove Corp Bhd.
Meanwhile, Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said the KLCI is expected to trade within a tight range of 1,590 to 1,600 points, but could breach the 1,600-point level should there be positive developments on the vaccine, which had faced scrutiny in Europe.
“Henceforth, drivers for gains next week could come from sectors linked to economic growth, such as industrial production, financial services and oil and gas,” he added.
The Energy Index ended the week 1.94 points higher at 937.12, as Brent crude jumped 3.38% to US$64.86 (RM268.52) per barrel, after the Organization of the Petroleum Exporting Countries (OPEC) and its allies agreed to add more than two million barrels a day to world oil supplies between May and July.
The move will rebuild a quarter of crude oil stock after the oil cartel and its allies made a deep cut a year ago due to the Covid-19 pandemic.
On a Friday-on-Friday basis, the benchmark KLCI fell 16.07 points to 1,585.35 from last Friday’s 1,601.42.
On the scoreboard, the FBM Emas Index dipped 35.19 points to 11,743.10, the FBMT 100 Index slid 50.62 points to 11,393.36, and the FBM Emas Shariah Index declined 72.31 points to 13,005.85.
The FBM 70 firmed up 178.86 points to 15,729.32, and the FBM ACE Index erased 727.99 points to 9,789.12.
Sector-wise, the Technology Index added 4.16 points to 87.35, the Industrial Products and Services Index added 2.61 points to 194.02, the Plantation Index fell 54.91 points to 7,045.54, and the Healthcare Index sank 78.87 points to 2,937.70.
The Financial Services Index eased 23.73 points to 15,276.56, and the Energy Index declined 13.87 points to 937.12.
Turnover increased to 35.38 billion units worth RM18.02 billion from 27.58 billion units worth RM14.63 billion in the previous week.
Main Market volume jumped to 23.28 billion shares worth RM14.77 billion from 16.44 billion shares worth RM11.42 billion last week.
Warrant volume swelled to 3.51 billion units worth RM374.24 million from 828.19 million units worth RM176.07 million.
The ACE Market volume improved to 10.75 billion shares worth RM3.03 billion from 10.05 billion shares worth RM3.03 billion the week earlier.
