KUALA LUMPUR, May 11 ― Bursa Malaysia is expected to trend lower next week, under pressure by a weak ringgit, commodities prices and Wall Street’s performance.
However, analysts remain optimistic that the weaknesses, including the ongoing US and China trade war as well as bearish technical indicators, are temporary.
“We have seen Chinese stocks lead Asia-Pacific equities higher into green territory on Friday despite the US hiking duties on US$200 billion (RM831 billion) worth of Chinese products.
“China immediately hinted it would retaliate, but did not specify its counter measures,” Phillip Capital Management, Asia-Pacific, senior vice president (investment) Datuk Dr Nazri Khan Adam Khan told Bernama.
The FBM KLCI dipped to its three-year low yesterday, as a result of investors adjusting their position due to the trade tensions.
On the domestic front, Dr Nazri Khan said he expected the latest political headlines to lend some cushion.
He said the market responded positively to a new economic direction for Malaysia outlined by the Prime Minister Tun Dr Mahathir Mohamad.
Among the strategic thrusts are restructuring and improving the business ecosystem, enhancing talent reformation and national resources, as well as generating new growth sectors.
“The objective of the Pakatan Harapan government to share the prosperity would be the main catalyst to boost the equity growth that benefits all levels of society,” he said.
During the week just ended, Bursa Malaysia traded mostly lower on cautious market sentiment, with investors closely watching the progress of the US-China two-day trade talks.
The week also saw Axiata Group and Norway’s Telenor Group announce they are in discussions to merge their operations in Asia and Bank Negara's decision to cut the overnight policy rate.
On a Friday-to-Friday basis, the benchmark FBM KLCI settled 27.03 points weaker at 1,610.27.
The FBM Emas Index declined 236.80 points to 11,374.96, the FBMT 100 Index depreciated 226.91 points to 11,205.05 and the FBM Emas Shariah Index erased 229.34 points to 11,550.43.
The FBM Ace Index fell 113.46 points to 4,532.57 and the FBM 70 shrank 442.34 points to 14,079.05.
Sector-wise, the Financial Services Index dropped 366.75 points to 16,566.18, the Plantation Index eased 151.59 points to 7,050.28 and the Industrial Products and Services Index gave up 2.66 points to 166.68.
Weekly turnover increased to 12.71 billion units valued at RM9.87 billion from 10.39 billion units valued at RM7.94 billion last Friday.
Main Market volume rose to 8.02 billion shares worth RM8.85 billion versus 7.51 billion shares worth RM7.36 billion.
Warrants turnover advanced to 2.54 billion units valued at RM704.83 million against 1.45 billion units valued at RM347.61 million.
The ACE Market volume was higher at 2.14 billion shares valued at RM301.87 million compared with 1.41 billion shares valued at RM232.15 million previously. ― Bernama
