THE FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to trend steadier next week on positive sentiment arising from thehigher-than-expected fourth-quarter gross domestic growth (GDP) growth of 5.1 per cent announced recently, dealers said.
Affin Investment Bank vice-president and head of retail research Dr Nazri Khan said the announcement underlines the constant growth trajectory in the country's economic progress.
On the global economic front, Nazri said, the FBM KLCI should regain upside momentum and track more upswings on Wall Street, on the dovish Federal Reserve chairwoman Janet Yellen's testimony and positive global economic data.
He also said that investors should welcome positive evidence from China suggesting that global demand was stronger than previously thought.
On the technical front, he said the local bourse showed an impressive week-on-week price rebound due to a short-term oversold position and stronger external front.
"The FBM KLCI has survived an important test of 200-day moving average on good volume and showed staying power. The local benchmark only needs to clear the 50-day moving average lines to signal that the January correction has run its course.
"We reiterate that the KLCI remains above its monthly uptrend level and thus is in a secular bull market. That means any significant periods of weakness this year should be viewed as strong buying opportunities," he said.
On a week-to-week basis, the FBM KLCI increased 10.78 points to 1,819.37 points, the Finance Index weakened 13.97 points to 16,553.12 points, the Industrial Index gained 17.9 points to 3,097.91 points and the Plantation Index jumped 150.95 points to 8,548.63 points. Bernama