KUALA LUMPUR – Bursa Malaysia is expected to rebound next week, fuelled by positive sentiment ahead of the Budget 2017 fresh catalysts.

Affin Hwang Investment Bank Vice-President/Head of Retail Research Datuk Dr Nazri Khan Adam Khan said the key index FTSE Bursa Malaysia KLCI (FBM KLCI) would likely move to the 1,680 region next week.

He said this would drive buying interest mostly in technology, telecommunications and construction-related stocks as they would likely benefit from the new budget.

“The budget is expected to be consumer-friendly and it will have more incentives for the people,” he told Bernama.

Prime Minister Datuk Seri Naib Tun Razak is scheduled to table the budget on Oct 21.

On the external front, he said the oil price recovery, the upcoming US presidential race and the US Federal reserve interest rate hike probability would continue to weigh on interest in Bursa Malaysia next week.

For the week just ended, the benchmark FBM KLCI eased 6.41 points to 1,658.97 compared with 1,665.38 last Friday.

The oil price movement coupled with the development in the two world’s largest economies, the US and China, were among factors that would influence risk appetite in the local market.

On a week-to-week basis, the FBM Emas Index fell 24.51 points to 11,737.64, the FBMT 100 Index decreased 24.51 points to 11,434.86 and the FBM Emas Syariah Index was 14.84 points lower at 12,404.89.

However, the FBM Ace rose 14.66 points to 5,149.2 and the FBM 70 gained 11.38 points to 13,792.42.

On a sectoral basis, the Finance Index gave up 45.79 points for 14,225.37, the Industrial Index lost 14.71 points to 3,121.04, but the Plantation Index perked 24.07 points to 7,914.57.

Weekly turnover widened to 7.56 billion units worth RM8.52 billion versus 6.27 billion units valued at RM7.39 billion last Friday.

Main market volume expanded to 4.81 billion units worth RM8.11 billion against 4.07 billion units valued at RM7.05 billion last week.

Warrant turnover rose to 1.15 billion units valued at RM213.87 million vis-a-vis 939.82 million units valued at RM175.12 million previously.

The ACE market improved to 1.58 billion shares worth RM199.33 million from 1.25 billion shares valued at RM162.55 million previously.

– Bernama