KUALA LUMPUR, Sept 28 — Bursa Malaysia is expected to trade sideways next week as it awaits stronger local catalysts for the push into positive territory, with the benchmark FTSE Bursa Malaysia (FBM KLCI) expected to trade between 1,580 to 1,595.
Philip Capital Management senior vice-president (investment) Datuk Dr Nazri Khan Adam Khan said as global tensions prevail from the ongoing US-China trade war, it was best for investors to be more selective and focused on defensive-stocks.
“Overall, a slowing global economy and elevated uncertainties over the prolonged US-China trade feud, as well as rising geopolitical tensions in the Middle East, remain as headwinds for the local bourse,” he told Bernama.
From a technical perspective, Nazri Khan said despite the present downtrend, the market should set itself for a rebound, once the dust settles on the US-China trade front and a stronger market catalyst is present.
“Although the local bourse is still under pressure in trading at below the 1,600-point mark, this does not negate our multi-month bullish view, as it is supported by the two appearances of the Bullish Harami candlestick pattern in August and September,” he added.
In the course of the week, the market was influenced by the continuous US-China trade spat, as well as the review by FTSE Russel on Malaysia’s bond market.
Trade representatives from the US and China are set to resume talks on Oct 10 and investors remain cautious over the outcome.
Despite being retained in the FTSE index, analysts had mixed views on the matter, with a majority remaining cautious as the local bond market’s performance is still under review until March 2020, which could lead to a higher fund outflow in the coming months.
On Friday, Bursa Malaysia closed 0.55 per cent lower due to selling pressure in selected heavyweights over cautious market sentiment, the global economic growth outlook, as well as recession fears.
On a week-on-week basis, the FBM KLCI weakened 13.27 points to 1,584.14 from last week’s close of 1,597.41.
The FBM Emas Index declined 77.08 points to 11,205.89, the FBMT 100 Index fell 76.80 points to 11,038.61 and the FBM Emas Shariah Index contracted 73.14 points to 11,761.17.
The FBM 70 lost 32.44 points to 13,930.71 and the FBM Ace Index slipped 20.44 points to 4,552.83.
Sector-wise, the Financial Services Index dropped 144.57 points to 15,317.36, the Industrial Products and Services Index slid 1.42 points to 153.13, and the Plantation Index contracted 53.10 points to 6,723.57.
Weekly turnover decreased to 9.89 billion units worth RM7.52 billion compared with 10.10 billion units worth RM8.57 billion previously.
Main Market volume declined to 5.81 billon shares worth RM6.67 billion compared with 6.81 billion shares valued at RM6.29 billion.
Warrants turnover was higher at 1.72 billion worth RM379.59 million compared with 1.58 billion units worth RM339.38 million.
The ACE Market volume firmed up to 2.35 billion shares valued at RM462.30 million in comparison with 1.70 billion shares valued at RM322.56 million. — Bernama
