KUALA LUMPUR, Dec 24 — Bursa Malaysia is expected to trend lower next week, with the benchmark index seen hovering at the 1,600-point level on lack of fresh catalysts ahead of year-end long holiday.

Affin Hwang Investment Bank Vice-President/Head of Retail Research, Datuk Dr Nazri Khan Adam Khan, said the weaker ringgit against the US dollar and falling oil prices might further dampen the local market.

“While there is lack of local leads, investors are likely to remain on the sidelines due to the prospects of a higher interest rate by the US Federal Reserve (Fed).

“However, despite external challenges, I believe Malaysia’s Gross Domestic Product which is projected at 4.2 per cent this year is achievable and expected to remain broadly stable, thanks to Bank Negara Malaysia’s initiatives as the central bank is flexible and adaptive in managing the interest rates and ringgit,” he told Bernama.

Meanwhile, Mercury Securities Sdn Bhd Research Head, Edmund Tham said most traders and investors were already in their holiday mood, hence, the market was expected to see reduced trading volume.

“We hope that the ringgit could improve against the US dollar next week as continuous weakening may further affect sentiment in the stock market,” said Tham.

On a week-to-week basis, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) fell 20.64 points to 1,617.15 from 1,637.79 last Friday, FBM Emas Index slid 136.20 points to 11,316.30, FBMT 100 Index declined 143.14 points to 11,037.21 and the FBM Emas Shariah Index was 101.87 points lower at 11,891.57.

The FBM Ace increased 7.91 points to 4,758.62, and the FBM 70 eased 176.00 points to 12,918.16.

On a sectoral basis, the Finance Index lost 195.69 points to 14,160.85, Industrial Index was down 21.4 points to 3,062.75 and the Plantation Index fell 75.20 points to 7,666.84. Weekly turnover increased to 5.80 billion units worth RM6.62 billion from 5.29 billion units worth RM6.67 billion registered last Friday.

Main market volume swelled to 4.04 billion shares valued at RM6.32 billion from 3.41 billion shares valued RM6.39 billion last week.

Warrant turnover slipped to 849.92 million units valued at RM168.80 million from 1.1 billion units valued at RM211.57 million last week.

The ACE market decreased to 906.67 million shares worth RM134.91 million from 967.72 million shares worth RM102.69 million last week. — Bernama