BURSA Malaysia is expected to gain momentum this week, driven by select blue chips as investor sentiment edged up after Bank Negara Malaysia maintained the Overnight Policy Rate at 3.25 per cent.
Analysts said this is also in line with the anticipated FTSE Bursa Malaysia KLCI (FBM KLCI) entering a “pre-budget rally” mode as well as the uptrend in most global stock markets.
Global markets generally edged higher in the week just ended after United States Federal Reserve said it was nearing the end of its asset purchases and reiterated that US interest rates would remain low.
Other global news that have improved investor risk appetites include the eye-popping initial public offering by Chinese e-commerce giant Alibaba Group Holding Ltd as well as Scotland remaining in the United Kingdom.
“With the expected rise in global markets, the FBM KLCI should make an U-turn and rebound,” said an analyst.
On Friday, the local benchmark index gained more than four points to 1,849.49. However, on a weekly basis, the FBM KLCI lost 0.3 per cent compared with 1,868.46 in the previous week.
Meanwhile, stocks expected to be in focus include Gunung Capital Bhd, SP Setia Bhd, Boustead Heavy Industries Corp Bhd and Sunway Bhd.
Gunung Capital received two Renewable Energy Power Purchase Agreements from Tenaga Nasional Bhd while Sunway plans to list its unit, Sunway Construction Sdn Bhd, on the Main Market in 2015.
SP Setia group acting presi-
dent and chief executive officer Datuk Voon has resigned after spending two decades with the developer, and Boustead Heavy Industries Corp’s joint-venture unit has bagged a contract worth some RM71 million to supply radar
electronic support measure systems and services to the Royal Malaysian Navy. By Muhammed Ahmad Hamdan