KUALA LUMPUR: Buyers’ anticipation of a rally within the FBM KLCI through the pre-Finances 2022 interval has change into a self-fulfilling prophecy that has propelled the benchmark index greater virtually 71% of the time for the reason that Asian Monetary Disaster.
TA Analysis mentioned in its technique report the rally began a lot earlier this yr due to the constructive information flows from overseas and the financial restoration optimism following the comfort on interstate journey and reopening of worldwide borders.
“The benchmark index has rallied 86.12 factors from a low of 1,515.54 on Oct 5 to a excessive of 1,601.66 factors on Oct 14 and should proceed to advance on this holiday-shortened week, albeit at a slower tempo as revenue taking stress will increase,” it mentioned.
To recap, the KLCI hit a recent six-week excessive final week, buoyed by financial reopening optimism following the comfort on interstate journey and reopening of worldwide borders.
Revenue-taking attributable to overbought momentum mid-week was properly absorbed, with robust discount searching curiosity in property and development associated shares cushioning falls.
Week-on-week, the KLCI climbed one other 34.38 factors, or 2.2%, to 1598.28, as positive aspects on key banking shares Public Financial institution (+12 sen), CIMB (+25 sen), Maybank (+23 sen) and RHB Financial institution (+42 sen) overshadowed falls in Prime Glove (-2 sen), PPB Group (-12 sen) and IOI Corp (-1 sen).
TA Analysis mentioned common every day traded quantity final week improved to five.14 billion shares in comparison with the 4.28 billion shares the earlier week, whereas common traded worth rose to RM3.32bil, in opposition to the RM3.04bil common the earlier week.
