KUALA LUMPUR, April 9 — Bursa Malaysia is likely to trend lower next week, shrouded by floundering oil prices, ringgit and the dovish stance of the Federal Reserve.

Affin Hwang Investment Bank vice-president and head of retail research Datuk Dr Nazri Khan Adam Khan said a fresh fall in oil prices was possible and this would pressure global equities including Bursa Malaysia.

“However, I believe the local bourse will trend lower temporarily to correct its overbought situation,” he told Bernama.

With the underlying trends of a strengthening ringgit and crude oil prices, we sense a good buy investment strategy now especially on emerging trading interest in plantation and oil & gas stocks.”

Nazri said the international benchmark Brent crude rallied more than 5 per cent after US crude inventories showed a first decline in two years and touched the US$40 a barrel mark for the first time in a week.

“The local market should do well by year-end as inbound capital flows surpass outbound flows in 2016 on improving credit risk and economic fundamentals,” he added.

Throughout this week, the market was swinging between losses and gains before it ended lower on weak trading sentiment mainly due to a drop in oil prices after data showed higher Iraqi exports which more than offset an unexpected decline in US crude oil inventories from record highs last week.

Concerns over the health of the global economy also resurfaced, sending the US dollar lower against the yen.

On a weekly basis, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) finished 7.85 points higher at 1,718.40.

The FBM Emas Index rose 78 points to 11,952.54, the FBMT100 Index added 73.32 points to 11,646.47 and the FBM Emas Shariah Index increased 78.45 points to 12,542.03.

On a sectoral basis, the Plantation Index fell 24.77 points to 7.821.52, the Industrial Index rose 1.22 points to 3,265.93 while the Finance Index surged 190.42 points to 14,872.54.

Weekly turnover fell to 7.78 billion units, valued at RM9.60 billion, from 8.33 billion units, valued at RM10.7 billion, registered last week.

Main market volume decreased to 5.13 billion shares, valued at RM9.16 billion, from 6.0 billion shares, valued at RM9.73 billion, recorded previously.

Warrant turnover slipped to 928.94 million units, valued at RM130.12 million, from last week's 1.32 billion units worth RM154.63 million.

The ACE market expanded 1.52 billion shares, worth RM307.35 million, from 989.34 million shares, worth RM186.31 million, transacted previously.  — Bernama