KUALA LUMPUR, Aug 29 ― Bursa Malaysia is likely to trade in a similar pattern next week, with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) expected to move in a tight range of between 1,540 to 1,560 as investors begin their bargain hunting.
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said the 3.3 per cent decline in the key index for the week, after settling at 1,525.21 points on Friday, presents an opportunity to accumulate some stocks, in particular glove maker stocks which have been hit on news Russia is preparing to approve a second Covid-19 vaccine.
“In the long run, demand for rubber gloves will remain high even once a vaccine is successfully procured as hygiene awareness continues to be high,” he told Bernama.
Echoing the same opinion, AxiCorp chief global market strategist Stephen Innes added that with rotation from winners into laggards dominating price action, the index may stall or at least remain range-bound next week as the market continues to look toward improved September re-opening optimism.
“But it is unlikely that the markets will fall too much as retail investors remain in ‘buy the dip mode’ expecting easier local monetary policy conditions in the near future,” he said.
Meanwhile, Areca Capital Sdn Bhd chief executive officer and fund manager Danny Wong Teck Meng opined that as most investors have already priced in for a worse second quarter (Q2) corporate earnings performance, buying trend is expected to emerge next week.
“Because investors think that the worst is over (for the companies) due to the Movement Control Order in Q2 2020, they will buy on weakness as the coming remaining quarters are likely to produce better outcomes,” Wong said with the expectation that the index would continue to trend within the 1,500 range.
For the week just ended, the FBM KLCI index was traded mostly mixed as profit-taking interspersed with bargain hunting between the heavyweights and lower liners, amid lack of fresh catalysts and the sluggish Q2 corporate earnings in general.
On a Friday-to-Friday basis, the FBM KLCI ended 51.91 points weaker at 1,525.21 on Friday, compared with 1,577.12 the previous Friday.
On the scoreboard, the FBM Emas Index declined 264.50 points to 11,085.58, the FBMT 100 Index shed 272.49 points to 10,886.75 and the FBM Emas Shariah Index went down 263.16 points to 13,166.65.
The FBM 70 advanced 11.11 points to 14,747.39 and the FBM ACE Index marched 57.39 points to 10,979.27.
Sector-wise, the Financial Services Index lost 383.72 points to 12,642.77, but the Plantation Index improved 17.62 points to 7,057.28 and the Technology index edged up 0.53 point to 56.79.
The Healthcare index strengthened 125.55 points to 4,222.31 but the Industrial Products and Services Index reduced 5.77 points to 136.50.
Weekly turnover widened to 57.16 billion units worth RM33.39 billion compared with 35.68 billion units valued at RM23.9 billion the previous week.
Main Market volume increased to 32.00 billion shares valued at RM25.44 billion versus 18.33 billion shares worth RM17.35 billion a week earlier.
Warrants turnover expanded to 3.05 billion units worth RM920.78 million from last week’s 2.35 billion units valued at RM934.36 million.
The ACE Market volume surged to 22.05 billion shares valued at RM7.00 billion compared with 41.11 billion shares worth RM13.72 billion last week. ― Bernama
