KUALA LUMPUR – Bursa Malaysia’s key index is expected to hover between 1,580 and 1,600 next week, as sentiment continues to be clouded by the country’s surging Covid-19 cases.
Rakuten Trade Sdn Bhd equity sales head Vincent Lau said investor sentiment has been fragile, with rising cases sparking fear among market players of another full lockdown – which was announced by the prime minister yesterday.
“Without the lockdown woes, the barometer index is likely to breach the next resistance level of 1,600,” he told Bernama.
“But given the current situation, whereby new Covid-19 cases topped 8,000 on Friday, the market barometer is likely to move between 1,580 and 1,600 next week.”
He anticipated traders looking to buy on weakness should stocks retreat significantly in the week to come.
Lau and Areca Capital Sdn Bhd chief executive Danny Wong share the view that recovery-themed sectors, such as technology, glove and healthcare, could stage a comeback.
Health Director-General Tan Sri Dr Noor Hisham Abdullah yesterday reported 8,290 fresh coronavirus infections, taking Malaysia’s total to 549,514.
For the week just ended, the FTSE Bursa Malaysia KLCI yesterday expanded 32.27 points to 1,594.44 from the 1,562.17 registered a week ago.
During the holiday-shortened trading week, the market hit an intra-day high for three consecutive days as solid corporate earnings for the quarter ending March 31 eclipsed jitters caused by the stepped-up restrictions under the third movement control order announced last weekend.
However, gains in the market were capped by concerns about soaring infections.
The local bourse was closed on Wednesday for the Wesak celebration. – Bernama, May 29, 2021
