KUALA LUMPUR – The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) is likely to trade in tight range at between 1,510 and 1,530 next week, as investors continue to remain cautious amid the Covid-19 pandemic despite encouraging vaccination rates.
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim sees no major catalysts for the market in the immediate term.
“A possibly higher growth for the industrial production index for May, due next Monday, is not likely to act as an impetus for the market, as the country had not yet entered a full-scale lockdown at that point in time,” he told Bernama.
For the week just ended, the equity market traded mostly lower, with fears over high infection rates keeping sentiments down.
Yesterday, Malaysia logged a record 9,180 coronavirus cases.
The market rebounded yesterday on bargain hunting, with glove counters tagged to FBM KLCI, such as Hartalega and Top Glove, advancing higher to the tune of 1.6% and 2.7%, respectively.
With this, the Bursa Malaysia Healthcare index was the biggest beneficiary among all the sectors, ending the week 2.1% up.
On Thursday, Bank Negara Malaysia maintained the overnight policy rate at 1.75% during its fourth Monetary Policy Committee meeting.
FBM KLCI fell 12.77 points to end the week at 1,520.58 from 1,533.35 a week earlier. – Bernama, July 10, 2021
