KUALA LUMPUR, Nov 2 — Shares on Bursa Malaysia are expected to trade sideways next week, driven by the surprised hint from the US Federal Reserve (Fed) that a December or January taper could be on the cards.
Affin Investment Bank Vice President/Head of Retail Research, Dr Nazri Khan, said given Wall Street’s weakness, the local market was expected to see a temporary volatile swing trades with the FTSE Bursa Malaysia KLCI (FBM KLCI) to be range-bound between 1,800 and 1,820 levels.
“The local bourse is likely to stay in profit-taking consolidation mode temporarily to correct near-term overbought momentum after a good bull run on cautious trade averaging 1.7 bilion shares, or RM1.8 billion a day,” he told Bernama.
However, he said, the weakness was seen as temporary as FBM KLCI should regain a new high given the improved macro condition seen in the US and Europe along with the marked recovery seen in commodities.
For the week just-ended, shares were volatile. It declined on profit-taking before rebounded on short-covering.
On a Friday-to-Friday basis, the FBM KLCI fell 7.16 points to 1,810.41 and the Finance Index dipped 200.27 points to 16,654.53.
The Plantation Index advanced 73.82 points to 8,615.58 and the Industrial Index improved 8.98 points to 3,136.89.
The FBM Emas Index lost 49.48 points to 12,586.94, FBMT100 Index fell 52.77 points to 12,310.9 and the FBM 70 Index was 74.25 points lower at 14,290.6.
The FBM ACE Index, however, chalked up 199.92 points to 5,746.29.
Weekly total turnover rose to 8.97 billion shares worth RM9.35 billion from 8.59 billion shares worth RM8.4 billion last week.
The Main market volume increased to 6.58 billion units valued at RM8.79 billion from 6.56 billion units valued at RM8.028 billion previously.
Warrants turnover surged to 219.19 million shares worth RM20.52 million 182.17 million shares worth RM20.54 million last Friday.
The ACE market volume improved to 2.16 billion units valued at RM535.73 million from 1.83 billion units valued at RM353.76 million previously. — Bernama
