KUALA LUMPUR, Feb 10 — Bursa Malaysia is expected to move into correction mode next week on the back of growing concern over higher US interest rates and the rising of bond yields, which had resulted in Wall Street entering into correction.

Affin Hwang Investment Bank Vice-President/ Head of Retail Research, Datuk Dr Nazri Khan Adam Khan, said the correction would, however, go on for a medium term, which probably happened once in ten years.

"As Asian markets and other parts of the world had also pulled back during the week, this suggests that more correction will be seen over the next few days.

"The markets, including commodities like rubber, crude palm oil and Brent crude will also be impacted by the sell-offs, but this will just be temporary. The last time it happened was in 1998,” he told Bernama.

On a positive note, Nazri Khan said, despite the global-driven market pullback, Malaysia has recorded a positive fund inflows, with foreigners remained the net buyers in January for Malaysian bonds to RM4.5 billion in January 2018 from RM2.7 billion in December last year.

"This shows that foreign buyers are confident of the fundamentals of Malaysia.

"Therefore, we see a limited downside of the pullback to 1,800 level for the benchmark index next week,” he said.

For the week just-ended, Bursa Malaysia was traded mostly lower, reflecting its Asian peers mainly due to the Wall Street slide which triggered the global stocks sell-off.

On a Friday-to-Friday basis, the FBM KLCI was broadly down by 50.66 points to end the week at 1,819.82.

The FBM Emas Index fell 401.52 points to 12,975.06, FBMT 100 Index decreased 369.88 points to 12,701.84 and the FBM Emas Shariah Index dipped 374.18 points to 13,277.64.

The FBM 70 was down 519.41 points to 15,948.77 and the FBM Ace fell 407.81 points to 6,088.32.

On a sectoral basis, the Finance Index erased 523.11 points to 17,456.47, Plantation Index declined 110.37 points to 7,946.03 and the Industrial Index fell 166.05 points to 3,221.36.

Total turnover rose to 15.68 billion units valued at RM16.43 billion from 6.52 billion units valued at RM6.15 billion last week.

The Main Market surged to 10.01 billion units worth RM15.42 billion from 5.63 billion units worth RM8.11 billion previously.

Warrants turnover advanced to 2.79 billion units valued at RM566.26 million from 1.61 billion units valued at RM243 million last week.

The ACE Market increased to 2.83 billion units worth RM432.96 million from 1.60 billion units worth RM275.57 million previously. — Bernama