KUALA LUMPUR, April 25 — Bursa Malaysia will likely continue to be preoccupied with economic data which has been dismal so far, with the market bracing for a gloomy projection of the US’ first quarter gross domestic product (GDP), set for release next week, which is expected to show a contraction.
Bank Islam Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the numbers are expected to contract by 4.1 per cent based on consensus estimates.
“The US Federal Open Market Committee (FOMC) meeting will reconvene on April 28-29. The market would be anticipating the US Federal Reserve’s assessment on the economy in light of the possible reopening of the economy in certain jurisdictions,” he told Bernama.
Mohd Afzanizam said China too will release its business sentiment index, including the Purchasing Managers’ Index (PMI) index published by its National Bureau of Statistics (NBS).
“This week we saw PMI indices across advanced economies collapsing in April. So, businesses are likely to refrain from expanding their operations. In that sense, the FBMKLCI next week will continue to be very guarded.
“The government has announced that the movement control order (MCO) will be extended for another two weeks (April 29-May 12). At the same time, there will be more economic sectors to be reopened gradually,” he added.
He said the markets would be watching on that space to gauge how the domestic demand would play out as the country progressed through the year.
“This week oil prices plunged to negative on April 20, but currently they have improved. And there is also commentators trying to associate a possible tension between the US and Iran could provide support to crude oil prices.
“However, the situation is far from certain as the decline in global oil demand can be overwhelming, therefore crude oil prices are likely to remain low. Perhaps, the FBMKLCI is expected to be timid next week, lingering around 1,360 to 1,380 points,” he added.
For the week just ended, Bursa Malaysia started on a positive note due to the bullish mode brought from the previous week, despite mixed sentiment on the regional bourses.
The momentum, however, was halted over the sharp fall in crude oil prices, with the West Texas Intermediate turned in focus after the May contract expiring Tuesday plunged at the start of the week, taking US crude prices below zero for the first time in history amid rapidly filling American storage tanks.
On a Friday-to-Friday basis, key index FTSE Bursa Malaysia KLCI (FBM KLCI) shed 37.49 points to1,369.85 from 1,407.34 in the previous week.
On the scoreboard, the FBM Emas Index lost 220.30 points to 9,554.64, the FBMT 100 Index decreased 224.08 points to 9,432.67 and the FBM Emas Shariah Index dropped 243.79 points to 10,593.73.
The FBM 70 contracted 131.08 points to 11,432.50 and the FBM ACE Index slipped 53.70 points to 4,449.18.
Sector-wise, the Financial Services Index declined 392.89 points to 12,254.06, the Industrial Products and Services Index eased 3.34 points to 115.68 and the Plantation Index dipped 202.64 points to 6,133.47.
Weekly turnover increased to 27.37 billion units worth RM14.07 billion from 24.59 billion units worth RM12.0 billion last Friday.
Main Market volume widened to 19.60 billion shares worth RM12.62 billion versus 16.56 billion shares valued at RM10.76 billion.
Warrants turnover was slightly higher at 1.90 billion units worth RM417.19 million from 1.66 billion units worth RM291.51 million.
The ACE Market volume slipped to 5.85 billion shares valued at RM1.04 billion compared with 6.36 billion shares valued at RM947.27 million. — Bernama
