During the week-just-ended, Bursa Malaysia staged a yo-yo pattern, influenced by concerns over the United States (US) interest rate, decline in daily local Covid-19 cases, Digi-Celcom merger, sell-off in rubber glove stocks, the World Bank’s revised projection of Malaysia’s economy growth, and US infrastructure deal. ― Picture by Hari Anggara
During the week-just-ended, Bursa Malaysia staged a yo-yo pattern, influenced by concerns over the United States (US) interest rate, decline in daily local Covid-19 cases, Digi-Celcom merger, sell-off in rubber glove stocks, the World Bank’s revised projection of Malaysia’s economy growth, and US infrastructure deal. ― Picture by Hari Anggara

KUALA LUMPUR, June 26 ― Bursa Malaysia is expected to trade in a cautious mode next week, amid a lack of major catalysts to influence investors’ risk appetite.

Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) would likely move at current levels of between 1,560 and 1,580 next week.

He said a major event that would be on investors’ radar is the Organisation of the Petroleum Exporting Countries (Opec) meeting which scheduled to be held on July 1, whereby members would discuss to further ease output cuts in anticipation of higher demand for oil in the coming months.

The possibility of lower production cuts became higher as Indian Oil Minister Dharmendra Pradhan on Thursday urged the Opec to phase out crude output cuts as high prices would stoke inflation, he said.

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“With that, oil and gas counters will be in the limelight next week. Aside from that, there seems to be no other catalyst from the external front.

“That leaves investors to observe the daily vaccination doses administered, which reached 268,604 doses on June 24 ― the highest on record, but at the same time, Covid-19 cases remain high at above 5,000 cases,” he told Bernama.

Adam said on the economic front, investors in Malaysia would be focusing on the export figures for May next Monday, which is expected to record another double-digit year-on-year growth underpinned by robust external demand.

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He said Malaysia’s producer price index (PPI) data for May would also be released later on Wednesday, whereby the growth in the PPI would follow the trend of China’s PPI given the strong correlation between the growth of PPI for both countries.

Other major economic data releases from other countries include Thailand, South Korea and Germany’s consumer price index for the month of May, whereby a stronger inflation rate is expected to be seen amid the recent global commodity price rally, he added.

During the week-just-ended, Bursa Malaysia staged a yo-yo pattern, influenced by concerns over the United States (US) interest rate, decline in daily local Covid-19 cases, Digi-Celcom merger, sell-off in rubber glove stocks, the World Bank’s revised projection of Malaysia’s economy growth, and US infrastructure deal.

The FBM KLCI fell 29.37 points to end the week at 1,559.68 at Friday’s close from 1,589.05 a week earlier.

On the index board, the FBM Emas Index was 250.54 points lower at 11,334.4, the FBMT 100 Index decreased 231.23 points to 11,045.1, the FBM Emas Shariah Index fell 392.46 points to 12,385.76, the FBM ACE dropped 485.9 points to 7,221.8, and the FBM 70 erased 397.07 points to 14,619.53.

Sector-wise, the Financial Services Index gave up 33.99 points to 15,279.71, the Industrial Products and Services Index slipped 4.03 points to 187.98, while the Plantation Index lost 159.15 points to 6,522.4. 

The Energy Index trimmed 35.78 points to 807.83, the Healthcare Index contracted 127.7 points to 2,941.17 and the Technology Index shed 3.25 points to 78.95.

Weekly turnover declined to 27.78 billion units worth RM14.25 billion, from 28.17 billion units valued at RM18.24 billion recorded in the previous week.

Main Market volume fell to 16.29 billion shares worth RM11.73 billion from last week’s 18.83 billion shares valued at RM15.58 billion.

Warrants volume increased marginally to 1.48 billion units worth RM154.96 million from 1.41 billion units valued at RM142.50 million previously.

The Ace Market volume advanced to 10.0 billion shares worth RM2.35 billion from 7.86 billion shares valued at RM2.51 billion last week. ― Bernama