KUALA LUMPUR, March 16 — The lower performance of US equities at the end of the trading week, a decline in the benchmark Brent crude, as well as an anticipation of fresh catalysts during Invest Malaysia, will weigh on Bursa Malaysia next week.
Phillip Capital Management Senior Vice President (Investment) Datuk Dr Nazri Khan said US equities closed lower on last Thursday after a revisit towards the S&P 500’s November highs on trade war updates, while US Treasuries slid, and Brent crude dropped a dollar from the four-month peak to halt an incline in European energy stocks.
“Going forward, we maintain our view on Bursa Malaysia next week to trend lower towards the 1,650 level,” he said.
The local bourse is expected to remain sluggish after recent weak earnings reports by local companies and from the fundamentals perspective.
According to Nazri, the gloomy performance is expected to extend further, given that the employment rate has shown a three per cent decline year-on-year.
“From the investors’ perspective, we see this as a minor correction, with the market giving a discount to buyers in line with the fact that foreign companies are showing rising confidence in Bursa Malaysia. This will cushion the internal weak performance after the negative earnings reports.
“For next week’s outlook, investors should avoid seasonal sectors, and focus more on consumer products and energy sectors,” he said.
Meanwhile, Maybank Investment Bank chartist Nik Ihsan Raja Abdullah said there is a possibility of profit taking in third liners, based on their performance in the week just ended.
“I don’t anticipate a big movement next week, with the FBM KLCI trading between 1,670 to 1,690 as the market awaits new catalysts, which Prime Minister Tun Dr Mahathir Mohamad is expected to provide in his speech during Invest Malaysia, which can be deemed as providing more clarity to the market,” he added.
On a Friday-to-Friday basis, the FBM KLCI settled 0.64 of-a-point better at 1,680.54.
The FBM Emas Index gained 19.95 points to 11,759.18, the FBMT 100 Index increased 12.24 points to 11,602.72 and the FBM Emas Shariah Index rose 10.26 points to 11,748.08.
The FBM 70 jumped 47.29 points to 14,209.07 and the FBM Ace Index soared 144.12 points higher at 4,834.45.
Sector-wise, the Financial Services Index improved 44.72 points to 17,537.11, the Industrial Products and Services Index inched up 1.44 points to 170.70 and the Plantation Index eased 7.95 points to 7,256.19.
Weekly turnover increased to 19 billion units worth RM13.22 billion from 14.55 billion units worth RM11.43 billion.
Main Market volume appreciated to 15.25 billion shares valued at RM12.36 billion from 10.47 billion shares valued at RM10.53 billion.
Warrants turnover inched down to 2.14 billion units worth RM449.56 million versus 2.65 billion units worth RM577.32 million.
The ACE Market volume was slightly higher at 1.45 billion shares worth RM356.27 million against 1.42 billion shares valued at RM316 million. — Bernama