KUALA LUMPUR, Feb 8 — Bursa Malaysia will likely see range-bound trading next week as investors remained cautious over global uncertainties including the 2019 novel coronavirus (2019-nCoV) impact and the release of economic data.
Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the global equities market seemed to be at the crossroads between the good numbers coming out of the United States (US) and the 2019-nCoV outbreak.
He was referring to the US Automatic Data Processing (ADP) Employment which stood at 291,000 in January and Institute for Supply Management Index for the manufacturing sector which rose to slightly more than 50 points in January, and the 2019-nCoV which is expected to have material effect on China’s economy in the short term.
Mohd Afzanizam said the US-China phase one trade deal was also gaining traction as China planned to cut by half its import tariff on US goods, while China’s central bank’s commitment to inject liquidity into the financial system should be able to lubricate the functioning of money and capital markets in the republic.
China announced on Thursday that it will halve tariffs on US$75 billion (RM311 billion) worth of US imports as it grapples with the escalating 2019-nCoV outbreak.
Starting next week, China will cut 10 per cent tariffs on some US goods to five per cent, while other goods that have faced 5.0 per cent levies will be cut to 2.5 per cent. The reduction affects US goods that China had imposed tariffs in September last year.
On the local front, he said next week, all eyes will be on Malaysia’s fourth quarter (Q4) 2019 gross domestic product (GDP) performance, which will be announced on Feb 12.
“There is also talks of fiscal stimulus as the govt appears to be contemplating to launch it in the face of global uncertainties.
“As such, the equities market should trade range-bound next week, probably at between 1,540 and 1,550 points, as the market awaits further details and developments,” Mohd Afzanizam told Bernama.
On a Friday-to-Friday basis, the FBM KLCI improved 23.43 points to 1,554.49 from 1,531.06 previously.
On the scoreboard, the FBM Emas Index was 170.05 points higher at 11,060.17 and the FBMT 100 Index increased 157.13 points to 10,860.72.
The FBM ACE Index jumped 144.56 points to 5,521.78, the FBM Emas Shariah Index surged 213.51 points to 11,766.21 and the FBM 70 soared 173.18 points to 13,824.68.
Sector-wise, the Financial Services Index climbed 198.90 points to 14,981.16, the Plantation Index was 164.29 points firmer at 7,307.91 and the Industrial Products and Services Index increased 2.07 points to 145.38.
Weekly turnover rose to 15.89 billion units worth RM12.74 billion from 12.65 billion units valued at RM11.05 billion in the previous week.
Main Market volume was higher at 9.75 billion shares valued at RM11.30 billion from 8.31 billion shares worth RM9.93 billion.
Warrants turnover widened to 2.30 billion units worth RM367.05 million from 1.77 billion units valued at RM309.02 million previously.
The ACE Market volume increased to 3.83 billion shares valued at RM1.06 billion from 2.56 billion shares worth RM804.78 million in the previous week. — Bernama
