KUALA LUMPUR — Bursa Malaysia is likely to continue its uptrend next week, fuelled by the positive announcement of the 2017 Budget.

However, the gains will be modest due to uncertainty in the global market, a dealer said.

He said the RM3 billion allocation for small- and mid-capitalised (mid-cap) companies would set a new tone for government-linked investment companies (GLICs) as it would help them to diversify their investment portfolios.

“This allocation would spur investor buying interest in small and penny stocks,” he told Bernama.

He said the 2017 Budget was good for the market as it could help boost economy growth and corporate earnings.

“We see the support level for FBM KLCI to be around 1,650-1,680 points next week,” the dealer said.

However, the underlying market sentiment remains cautious due to uncertainty over the US Federal Reserve’s (Fed) interest rate hike and crude oil price volatility.

“Conflicting statements on the timing of the Fed’s interest rate hike adds to the market uncertainty,” the dealer said.

He said the floundering global oil prices and the Fed’s interest rate hike probability would continue to weigh on interest in Bursa Malaysia next week.

FXTM Research Analyst Lukman Otunuga said stock markets were erratic on Thursday with most major arenas violently swinging between losses and gains due to a combination of depressed oil prices and resurgent in the US dollar.

For the week just ended, the benchmark FBM KLCI added 11.01 points to 1,669.98 compared with 1,658.97 last Friday.

On a week-to-week basis, the FBM Emas Index increased 72.48 points to 11,810.12, the FBMT 100 Index increased 74.87 points to 11,509.73 and the FBM Emas Syariah Index was 37.48 points higher at 12,442.37.

However, the FBM Ace fell 24.34 points to 5,124.86 and the FBM 70 rose 86.68 points to 13,879.10.

On a sectoral basis, the Finance Index surged 203.97 points for 14,429.34, the Industrial Index gained 21.76 points to 3,142.80, but the Plantation Index perked 46.79 points to 7,961.36.

Weekly turnover decreased to 5.75 billion units worth RM8.51 billion versus 7.56 billion units worth RM8.52 billion last Friday.

Main market volume eased to 4.62 billion units worth RM8.15 billion against 4.81 billion units worth RM8.11 billion last week.

Warrant turnover rose to 1.19 billion units valued at RM196.45 million vis-a-vis 1.15 billion units valued at RM213.87 million previously.

The ACE market reduced to 1.34 billion shares worth RM145.10 million from 1.58 billion shares worth RM199.33 million previously.

— Bernama