KUALA LUMPUR, Oct 18 ― After declining to a one-year low this week, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to continue recouping its losses next week to correct its oversold position.

Affin Hwang Investment Bank Vice-President and Head of Retail Research Dr Nazri Khan Adam Khan however said the sentiment still remained cautious despite the positive 2015 Budget and technical rebound.

“The next downside target is now at 1,780 and 1,750-point support levels while the resistance levels stand at 1,800 and 1,830 points respectively,” he told Bernama.

Nazri Khan said the market breadth had deteriorated this week with only 200 gainers versus 1,000 losers, while the average daily trading volume increased to 2.5 billion shares worth RM2.6 billion as compared to the previous week’s 2.1 billion shares worth RM2.2 billion.

“On the positive side, we view this correction as healthy. Given that the FBM KLCI has scored well over the last eight months, a decent correction is natural and any weaknesses should be treated as buy-on-dip opportunities,” he added.

He said the primary medium trend supported the bear camp but an extremely oversold condition left the prospect open for a corrective bounce.

“While we expected that fresh buying interest could emerge once the FBM KLCI falls below 1,750 points from its all-time peak, the weaker outside market environment continues to warrant caution,” he added.

For the week just ended, the FBM KLCI fell 20.57 points to end at 1,788.31 from 1,808.88 last Friday.

The Finance Index slipped 217.73 points to 16,541.84, the Industrial Index shed 1.35 points to 3,128.03, and the Plantation Index dropped 242.3 points to 7,932.95.

The FBM Emas Index was 199.83 points lower at 12,360.3, the FBMT100 Index fell 165.44 points to 12,033.74 and the FBM Emas Syariah Index was 166.54 points easier at 12,712.68.

The FBM 70 decreased 287.98 points to 13,463.77 and the FBM Ace trimmed 534.88 points to close the week at 6,118.37.

The weekly turnover increased to 9.90 billion shares valued at RM10.53 billion, from 8.80 billion shares valued at RM8.77 billion last week.

Main market volume rose to 7.44 billion units worth RM10.1 billion, from 6.41 billion units worth RM8.30 billion registered previously.

Warrant turnover rose to 383.17 million units valued at RM30.5 million, from ― Bernama

218.42 million units worth RM25.34 million transacted last week. The ACE market volume declined to two billion units worth RM368.99 million, from 2.14 billion units valued at RM441.44 million recorded last Friday

218.42 million units worth RM25.34 million transacted last week. The ACE market volume declined to two billion units worth RM368.99 million, from 2.14 billion units valued at RM441.44 million recorded last Friday. -- Bernama