KUALA LUMPUR: Bursa Malaysia closed higher on Friday, boosted by late buying support from local funds, and fresh foreign funds.
At 5pm, the benchmark FBM KLCI increased by 5.17 points to 1,533.55 from the previous day's close of 1,528.38.
The key index opened 2.3 points better at 1,530.68 in the morning and fluctuated between 1,529.3 and 1,534.53 throughout the day.
Gainers outnumbered losers 553 to 449 on the broader market, while 500 counters remained unchanged, 798 were untraded, and 11 were suspended.
Turnover decreased to 3.63 billion units valued at RM2.36 billion, compared to yesterday's 3.68 billion units worth RM2.28 billion.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng noted that the benchmark index experienced a notable rise, surpassing the challenging resistance level of 1,527 on Tuesday.
"While it faced a pullback on Thursday, we view this correction as a healthy consolidation necessary for sustaining an uptrend.
"While we anticipate a brief pause for the bulls after Tuesday's strong rally, the index has maintained its position above all Exponential Moving Averages (EMA)," he said.
Thong further mentioned that, along with the upward trend of the 20-day Exponential Moving Average (EMA), this indicates that the FBM KLCI is currently consolidating with a favourable inclination.
"As such, we anticipate the index to hover within the 1,520–1,540 range for next week, with immediate support of 1,520, followed by 1,500.
"A notable subsequent resistance level stands at 1,540, and a breakthrough above this level could signal further upward momentum," he added.
Regionally, Thong noted an upward trend as US Treasury yields decreased and the dollar weakened against the Japanese yen and other major regional currencies due to larger-than-expected declines in US retail sales for January.
This prompted a slight adjustment in expectations for interest rate cuts.
"With the return of foreign funds into the region, we expect buying momentum on local equities to continue, spurred by a renewed sense of optimism," he added.
Thong is optimistic that the existing momentum will boost trading volume and attract additional investors to the market, particularly retail investors.
