Downward pressure on Bursa Malaysia to continue

An investor monitors share market prices in Kuala Lumpur October 11, 2018. — Picture by Ahmad Zamzahuri
An investor monitors share market prices in Kuala Lumpur October 11, 2018. — Picture by Ahmad Zamzahuri

KUALA LUMPUR, Nov 10 — Bursa Malaysia is expected to brace continued downward pressures on the prices amid weak sentiment domestically coupled with external factors, said M&A Securities Sdn Bhd Chief Dealing Officer R. Sundararajah.

“At the moment, we see support level for the composite index to remain at 1,700-level. However, it may go down to 1,680. Unless there are more negative news, then it will pressure the local bourse further,” he told Bernama.

He opined that the market did not react positively to the 2019 Budget tabled last week as investors deemed it as lacking catalysts to boost the market.

“The fact that Moody’s downgrade Petronas’ ratings further dampened the sentiment and foreign buyers were taken aback by this announcement. Having said that, we also have to look into selective counters if they want to participate in the cash market,” he told Bernama.

On a Friday-to-Friday basis, the benchmark FBM KLCI settled 4.78 points lower at 1,708.09.

The FBM Emas Index dropped 11.39 points to 11,846.26, the FBMT100 Index decreased 8.48 points to 11,688.13, but the FBM Emas Shariah Index improved 121.47 points to 12,11.69.

The FBM 70 added 110.29 points to 13,845.99, while the FBM Ace was 87.95 points easier at 4,932.60.

On a sectoral basis, the Finance Index declined 74.90 points to 17,199.10, the Plantation Index was 27.09 points easier at 7,362.73, while the Industrial Products and Services Index edged up 0.18 of-a-point to 173.30.

Comparing Friday-to-Friday, weekly turnover narrowed to 6.26 billion units worth RM6.59 billion from 9.63 billion units valued at RM8.15 billion.

Main Market volume slipped to 4.09 billion shares worth RM6.12 billion compared with 6.34 billion shares, worth RM7.47 billion registered last Friday.

Warrants turnover eased to 1.07 billion units valued at RM263.87 million from 1.72 billion units valued at RM414.93 million.

The ACE Market volume shed to 917.68 million worth RM205.37 million from 1.55 billion shares worth RM259.77 million.

Meanwhile, trading in the shares of Malaysian Resources Corp Bhd (MRCB) will be suspended on Monday pending a material announcement.

In a filing with Bursa Malaysia today, MRCB said Bursa Malaysia Securities Bhd had approved its request for the suspension.

The structured warrants relating to MRCB will also be suspended at the same time. — Bernama