KUALA LUMPUR: Bursa Malaysia is expected to trend higher next week with the composite index likely to move towards the 1,880 level, amid positive sentiment surrounding the market, a dealer said.
Her-Mana Capital Bhd's Chief Executive Officer and Chief Investment Officer Datuk Dr Nazri Khan Adam Khan said the market would be driven by improved sentiment due to declining global geopolitical tensions and steady commodity prices.
"The Korean Summit between the leaders of North and South Korea, has eased geopolitical tensions on the peninsula and helped boost sentiment.
"This is a positive development as South Korea is seen as one the best performing stock markets this year and which could have an impact on the global economy," he told Bernama.
He said the market fundamentals also remained intact with commodity prices remaining firm, and economic indicators still being positive.
"With the consumer price index for March at 1.3%, Bank Negara Malaysia is not expected to raise interest rates when the Monetary Policy Committee meets on May 10, which is good for businesses and the equity market," added Nazri Khan.
He said with the 14th General Elections around the corner, more foreign fund inflows are expected, as investors position themselves for a relief rally on expectations that the current government would retain power.
"This is expected to lift the FTSE Bursa Malaysia KLCI towards the 1,900 points level," he added.
On a Friday-to-Friday basis, the benchmark index was 24.28 points lower at 1,863.47 from 1,887.75 last week.
The FBM Emas Index slipped 179.81 points to 12,988.73, the FBMT100 Index declined 169.09 points to 12,806.93 and the FBM Emas Shariah Index fell 221.27 points to 13,128.80.
The FBM 70 dropped 210.98 points to 15,406.05 and the FBM Ace dropped 134.98 points to 5,309.14.
On a sectoral basis, the Finance Index declined 211.95 points to 18,275.89, the Industrial Index slid 74.13 points to 3,210.57, while the Plantation Index eased 16.65 points to 7,977.24.
Weekly turnover narrowed to 9.42 billion units valued at RM9.96 billion from 13.06 billion units worth RM11.67 billion.
Main market volume declined to 5.29 billion units worth RM9.15 billion from 8.12 billion units worth RM10.76 billion.
Warrants turnover shrank to 2.48 billion units valued at RM544.63 million from 2.75 billion units worth RM522.99 million.