KUALA LUMPUR, May 30 — Bursa Malaysia is expected to continue trading in a cautious mode next week as market sentiment will be largely influenced by external factors, especially the ongoing United States-China tensions.
A dealer said the outcome from US President Donald Trump’s news conference on China on Friday, would be the major catalysts for global equity markets next week as it would determine the outlook for the global economic recovery.
AxiCorp global chief market strategist Stephen Innes said the fall out or fall ins from Trump’s Hong Kong reactions and whether oil prices will continue to rise would be the market focus next week.
The latter would be tied closely to the bullish sentiment for risk and stock market reopening themes, he said.
On the local front, he said the market had been making very good progress during the week-just-ended as tailwinds from the government and Bank Negara Malaysia’s (rate cut) stimulus helped as economies reopen.
“With another rate cut perhaps on the cards, sentiment could receive a further boost if Covid-19 case counts remain flat around the world with the reopening of economies.
“Look for the market to carve out a new trading range next week at between 1,450 and 1,475,” he told Bernama.
During the holiday-shortened week, tensions between Washington and Beijing worsened, causing global equities to tumble, and offsetting hopes for global economic recovery over the development of Covid-19 vaccines, coupled with the revival of business activities.
The local market was closed on Monday and Tuesday in lieu of the Hari Raya Aidilfitri celebration.
On a Friday-to-Friday basis, the index rose 37.49 points to end at 1,473.25.
On the scoreboard, the FBM Emas Index rose 286.73 points to 10,463.85, the FBMT 100 Index expanded 287.89 points to 10,313.21 and the FBM Emas Shariah Index soared 404.88 points to 12,025.22.
The FBM 70 surged 500.04 points to 13,195.2 and the FBM ACE Index chalked up 232.02 points to 5,619.81.
Sector-wise, the Industrial Products and Services Index gained 5.67 points to 130.06, the Plantation Index was 62.32 points higher at 6,785.17, and the Financial Services Index increased 102.01 points to 12,482.74.
For the week just-ended, weekly turnover shrank to 23.18 billion units worth RM19.53 billion from 41.29 billion units worth RM21.53 billion in the previous week.
Main Market volume decreased sharply to 13.58 billion shares worth RM16.95 billion against 30.09 billion shares valued at RM18.77 billion previously.
Warrants turnover dwindled to 1.71 billion units worth RM521.91 million compared with 3.16 billion units worth RM643.55 million in the week before.
The ACE Market volume dipped to 7.88 billion shares worth RM2.06 billion versus 8.02 billion shares valued at RM2.11 billion previously. — Bernama