KLCI likely to move range-bound between 1,590 and 1,610 next week

KLCI likely to move range-bound between 1,590 and 1,610 next week
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KUALA LUMPUR (April 23): The benchmark FBM KLCI is anticipated to trade range-bound next week between 1,590 and 1,610 amid a lack of major catalysts to influence investors’ risk appetite.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the market would likely see bargain-hunting activities as the KLCI almost touched the support level of 1,600 on Friday (April 22). 

“As such, we expect the index to hover in the 1,590-1,610 range next week with immediate support at 1,580 and resistance at 1,620,” he told Bernama.

Meanwhile, Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid forecast the KLCI would linger at around 1,600 points next week as the latest Consumer Price Index print showed that inflation remained steady at 2.2% for two consecutive months (February and March) from 2.3% in January.

He said that given that the government continued to maintain the fuel subsidies, the inflation rate would likely remain contained.

“As for Bank Negara Malaysia, the monetary policy accommodation can be maintained as inflation continues to be fairly steady.

“In other words, policy support from the government and central bank will be the key underpinning factors for growth. However, external factors such as the US Federal Reserve, the war in Ukraine and supply chain disruption would result in cautious sentiment among investors,” he added.

On a Friday-on-Friday basis, the KLCI rose 12.96 points to end the week at 1,601.97 from 1,589.01 in the previous week.

On the index board, the FBMT100 Index added 66.65 points to 11,127.99, the FBM Emas Shariah Index rose 41.63 points to 12,089.20 and the FBM Emas Index gained 70.36 points to 11,484.06.

Meanwhile, the FBM ACE retreated 61.14 points to 5,725.36 and the FBM 70 lost 12.76 points to 13,768.59.

Sector-wise, the Plantation Index increased 242.60 points to 8,597.87, the Industrial Products and Services Index was marginally higher by 0.28 of a point at 214.75, and the Energy Index added 16.24 points to 767.51.

The Financial Services Index gained 212.20 points to 16,848.20, the Healthcare Index shed 7.23 points to 2,080.22 and the Technology Index inched down 0.61 of a point to 71.83.

Weekly turnover fell to 11.04 billion units valued at RM8.26 billion from 17.33 billion units valued at RM10.46 billion last week.

Main Market volume decreased to 6.33 billion shares worth RM7.37 billion versus 11.55 billion shares worth RM9.33 billion in the previous week.

Warrant volume shrank to 1.04 billion units valued at RM160.21 million against 1.46 billion units valued at RM236.16 million previously.

ACE Market volume slumped to 2.66 billion shares worth RM729.55 million from 4.3 billion shares worth RM889.94 million the week before.