KUALA LUMPUR – Bursa Malaysia is expected to trade sideways next week, with the benchmark index FTSE Bursa Malaysia KLCI (FBM KLCI) to move between the 1,500 and 1,520 levels amidst positive global market sentiment.
Inter-Pacific Asset Management Sdn Bhd executive director and fund manager Datuk Nazri Khan Adam Khan said the condition in the broad market is still good and trading volume is still strong.
“Malaysian stocks are still being supported despite some profit taking on the heavyweights. We have sustained buying from foreign funds, which help to cushion the losses (on the local index). The key index is still comfortably above the 1,500 psychological level.
“Most of the institutional funds are still in the wait-and-see condition, but foreign funds now are providing the leadership,” he said.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said on the domestic front, despite the cautious market undertone, bargain hunting is expected to prevail given the cheap valuations of local stocks, continuous inflow of foreign investors and the improving macroeconomic situation in the country.
“As such, we expect the benchmark index to trend slightly higher within the region of 1,500-1,520 for next week with immediate resistance at 1,530 while support at 1,500,” he said.
At yesterday’s close, the FBM KLCI declined 12.18 points to end at 1,504.44 compared with Thursday’s close of 1,516.62.
On a weekly basis, the benchmark index reduced 1.75 points to 1,504.44, from 1,506.19 at the end of the previous week, mainly influenced by external factors.
On the index board, the FBM Emas Index declined 3.28 points to 10,679.89, the FBMT 100 Index decreased 4.35 points to 10,423.26, the FBM Emas Shariah Index bagged 25.27 points to 10,815.60, the FBM 70 picked up 26.05 points to 12,787.44, and the FBM ACE improved 49.94 points to 4,986.68.
Sector-wise, the Financial Services Index dipped 101.63 points to 16,725.98, the Plantation Index expanded 50.43 points to 7,247.24, and the Industrial Products and Services Index eased 0.30 of-a-point to 183.74, while the Energy Index added 38.22 points to 671.34.
Weekly turnover widened to 12.58 billion units worth RM9.33 billion from 11.51 billion units worth RM7.86 billion in the previous week.
The Main Market volume was higher at 8.54 billion shares valued at RM7.88 billion against 7.77 billion shares valued at RM6.74 billion in the previous week.
Warrants volume rose to 1.61 billion units worth RM241.46 million versus 1.47 billion units worth RM240.25 million last week.
The ACE Market volume increased to 2.40 billion shares valued at RM1.21 billion from 2.27 billion shares valued at RM886.35 million the week before. – Bernama, August 20, 2022
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