KUALA LUMPUR, Feb 13 ― Bursa Malaysia is expected to trend lower and consolidate towards the 1,600 points level next week amid weak sentiment in global equity markets.

Affin Hwang Investment Bank Vice-President and Retail Research Head Datuk Dr Nazri Khan Adam Khan said lack of stimulus and the recent testimony by the US Federal Reserve dampened sentiment.

“This was compounded by persistent uncertainty about the outlook for global growth amid sliding oil prices, concerns about a hard landing for China and fears about the over exposure of European banks to oil related bonds,” he said.

On the domestic front, the market saw a mix of bullish (ringgit, industrial output) and bearish economic data (trade surplus) that might deepen the local index consolidation, he told Bernama.

Overall, Nazri said the local stock market was expected to stay weak week with key major sectors (technology and finance) dragging the index lower.           

“With the underlying trends of a strengthening ringgit, we sense a good defensive investment strategy now especially on emerging trading interest in consumer, utilities and health care stocks,” he added.

On a weekly basis, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) finished 18.72 points lower at 1,643.74 this holiday-shortened week.

The FBM Emas Index dropped 126.23 points to 11,400.33, the FBMT100 Index declined 120.11 points to 11,113.69 and the FBM Emas Shariah Index decreased 174.7 points to 12,168.12.

On a sectoral basis, the Plantation Index shed 97.08 points to 7,722.81, the Industrial Index eased 11.62 points to 3,241.97 while the Finance Index reduced 60.98 points to 13,836.70.

Weekly turnover shrank to 3.45 billion units, worth RM4.04 billion, from 6.64 billion units, worth RM8.11 billion, recorded last week.

Main market volume fell to 2.37 billion shares, valued at RM3.82 billion, from 4.66 billion shares, worth RM7.71 billion, registered previously.

Warrant turnover decreased to 472.03 million units, worth RM100.81 million, from 978.86 billion units, worth RM171.3 million, traded last week.

The ACE market contracted to 601.8 million shares, worth RM124.51 million, from 997.63 million shares, worth RM227.4 million, transacted previously. ― Bernama