Share prices on Bursa Malaysia are likely to be higher next week on the back of investor optimism over the local bourse, coupled with positive corporate data as well as the government's initiatives in boosting the economy, dealers said.
MIMB Investment Bank Bhd's head of research, Chan Ken Yew, said at the moment, the market was abuzz with talks on privatisation which kept interest positive.
He said interest next week would likely be on consumer food and beverage as well as retail sectors.
"Next week, interest will still be confined to selected smaller and mid-capitalised counters. We will also look at some rotational plays," he told Bernama.
Chan said consumer-driven counters were likely to be the new source of growth.
"Malaysia is becoming a public consumption-driven economy. Currently, it accounts for about 33 per cent of gross domestic product. We also have a young population that will likely continue to consume and there's no way there will be no growth," he said.
On external factors, he said, the direct impact to the country would be minimal as Bursa Malaysia was quite resilient compared to other regional bourses.
He expected the support level next week to be at 1,300 and the next resistance level at 1,350.
Chan said the government's move in reducing the subsidies gradually would likely improve the country's economy in the future.
On Thursday, the government cut subsidies for petrol, diesel, liquefied petroleum gas and sugar as part of its strategy in removing subsidy gradually.
For the week just-ended, the key FBM KLCI rose 2.57 points to 1,336.65.
On a Friday-to-Friday basis, the FBM KLCI increased by 12.34 points to 1,336.65 compared with 1,324.31 previously.
The FBM Emas Index surged 117.55 points to 9,048.43, FBM70 gained 157.23 points to 9,085.5 and the FBM Ace Index edged up 2.88 points to 3,764.61.
The Finance Index advanced 148.94 points to 12,100.61, Plantation Index increased 15.56 points to 6,289.50 and the Industrial Index rose 21.18 points to 2,655.03.
Total volume for the week rose to 3.40 billion shares worth RM5.94 billion from 2.81 billion shares worth RM5.02 billion last week.
Volume on the Main Market increased to 3.10 billion units valued at RM5.88 billion from 2.50 billion units valued at RM4.96 billion previously.
The ACE Market volume slipped to 143.06 million shares worth RM19.08 million from 207.64 million shares worth RM37.02 million last Friday.
Warrants surged to 131.56 million units valued at RM21.99 million from 83.08 million units valued at RM9.95 million previously. -- Bernama
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