KUALA LUMPUR – The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) is likely to continue its downtrend next week, driven by a bearish economic outlook on the domestic and global fronts, said a dealer.
Rakuten Trade Sdn Bhd vice-president (equity research) Thong Pak Leng said local equities ended lower in a lacklustre trading day yesterday due to selling pressure on heavyweights, particularly banking and glove stocks.
“Key regional markets were also in negative territory following the firmly negative cues overnight from Wall Street as investors reacted to rising inflation worries.
“We expect the benchmark index to consolidate further next week, with immediate support at 1,520, followed by psychological support at around 1,500, and with resistance at 1,550,” he told Bernama.
Yesterday, FBM KLCI fell 0.87%, or 13.32 points, to close at 1,524.48, while market breadth was negative, with 757 losers against 269 gainers.
“Trading on the local bourse has been rather volatile of late, as the weak market undertone saw FBM KLCI failing to break the 1,550 level. Volatility from external factors could be one of the reasons for the weak showing by the local bourse as well,” said Thong.
On a Friday-to-Friday basis, the benchmark index eased 7.58 points to end the week at 1,524.48 from 1,532.06 previously. – Bernama, October 2, 2021
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