KUALA LUMPUR: Bursa Malaysia is likely to trend higher in the first week of 2024 with a mild upside, to be driven by banking and technology stocks.

Inter-Pacific Asset Management Bhd chief economist and fund manager Datuk Dr Nazri Khan expects the local market to trend between 1,450 and 1,460 next week with some bargain hunting likely to emerge.

"Furthermore, we see the year-end Christmas rally driven by feel-good factors and window dressing as well as overnight strength from Wall Street, coupled with signs that inflation has retreated and interest rate is expected to go down," he told Bernama.

He also noted that the trading volume had surged past four billion units and market breadth has been positive, therefore, the market could be bullish next week.

Looking ahead to 2024, Rakuten Trade equity research vice-president Thong Pak Leng said the brokerage firm holds a positive view on the performance of Malaysian equities, buoyed by the prospect that the US Federal Reserve is set to begin interest rate cuts and the return of foreign funds to the region.

"We anticipate the FTSE Bursa Malaysia (FBM KLCI) to linger around the 1,590 mark, based on the prevailing valuation premised on 2024 estimates, and could test the 1,650 level," he said.

For next week, he projects further upward potential if the FBM KLCI Index surpasses the 1,465-resistance line.

"As such, we expect the index to trend within the 1,450-1,470 range next week, with immediate support at 1,450 followed by 1,440," he said.

For the holiday-shortened week just ended, Bursa Malaysia traded mixed amid muted trading as investors continued to stay on the sidelines due to the holidays, amid mild bargain-hunting activities after the recent sell-off.

On a Friday-to-Friday basis, the FBM KLCI rose marginally by 0.28 of-a-point to end the week at 1,454.66 versus 1,454.38 a week ago.

On the index board, the FBM Emas Shariah Index lost 27.86 points to 10,988.71, the FBM 70 Index fell 3.86 points to 14,612.98, while the FBM ACE Index went up 105.83 points to 5,322.03, the FBM Emas Index gained 3.78 points to 10,823.70, and the FBMT 100 Index was 0.79 of-a-point better at 10,485.72.

Sector-wise, the Industrial Products and Services Index inched up 0.23 of-a-point to 172.99, the Financial Services Index added 55.95 points to 16,303.04, while the Energy Index slid 0.87 of-a-point to 817.73 and the Plantation Index shed 28.49 points to 7,007.96.

Bursa Malaysia ended the week with a lower turnover of 15.11 billion units worth RM9.38 billion versus 18.39 billion units worth RM12.04 billion in the preceding week.

The Main Market volume shrank to 9.41 billion shares valued at RM8.10 billion against 10.75 billion shares valued at RM10.40 billion in the previous week.

Warrants turnover tumbled to 1.54 billion units valued at RM187.568 million from 3.04 billion units valued at RM356.87 million last week.

The ACE Market volume declined to 4.03 billion shares worth RM1.08 billion compared to 4.44 billion shares worth RM1.28 billion previously.

 - BERNAMA