KUALA LUMPUR, April 20 — Bursa Malaysia is likely to trend lower next week with the FBM KLCI moving towards the 1,600 level amid the lack of local catalysts.
Phillip Capital Management Malaysia senior vice-president (investment) Datuk Mohd Nazri Khan Adam Khan said the weaknesses in the local market would be cushioned by the expectation of a stronger Wall Street performance.
This was due to optimism on the trade breakthrough between the United States and China, as well as rising Brent crude oil prices, he added.
“The (current) bearish sentiment is expected to be only temporary, as the fundamental factors remained strong. Note that our foreign-exchange reserves are on surplus, energy prices are well supported, and inflation rate is low. The strong support is still valid at 1,600 points,” he told Bernama.
He added that the immediate resistance stood at between 1,630 points and 1,650 points.
During the week just ended, Bursa Malaysia was traded mostly lower due to the absence of firm direction, while market sentiment was further weakened by Malaysia’s possible removal from the World Government Bond Index.
Stock market indices provider FTSE Russell has placed Malaysia on the fixed income watch list for at least six months, following the completion of its first fixed-income country classification review.
On a Friday-to-Friday basis, the benchmark FBM KLCI settled 8.10 points easier at 1,622.07.
The FBM Emas Index fell 64.23 points to 11,497.23, the FBMT 100 Index eased 61.09 points to 11,324.88 and the FBM Emas Shariah Index dropped 72.37 points to 11,690.02.
The FBM Ace Index narrowed 56.55 points to 4,692.85 and the FBM 70 decreased 95.98 points to 14,382.51.
Sector-wise, the Financial Services Index fell 76.81 points to 16,745.26, the Plantation Index declined 40.43 points to 7,228.91 and the Industrial Products and Services Index added 0.17 of-a-point to 168.30.
Weekly turnover fell to 14.13 billion units worth RM9.25 billion against 17.52 billion units worth RM11.47 billion last Friday.
Main Market volume depreciated to 9.32 billion shares valued at RM8.41 billion against 13.25 billion shares valued at RM10.53 billion.
Warrant turnover eased to 2.03 billion units worth RM1.98 billion from 2.37 billion units worth RM540.50 million.
The ACE Market volume was higher at 2.78 billion shares valued at RM409.25 million versus 1.89 billion shares valued at RM396.55 million. — Bernama