Bursa likely to see more cautious trading next week

KUALA LUMPUR – Bursa Malaysia is expected to see further cautious trading next week amid increasing global market volatility due to uncertainties, said an analyst.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the overall outlook of Malaysian equities was expected to remain stable in the medium term given their attractive valuations, stronger corporate earnings, and improving economic conditions.

“Nonetheless, we reckon investors will remain cautious for the moment due to external factors such as increasing market risks and volatility in global markets,” he said.

According to Thong, the FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to continue its sideways pattern within the range of 1,380-1,395 next week.

“From the technical point of view, we see immediate resistance at 1,390 followed by 1,415 and support at 1,373 followed by 1,350,” he added.

On a Friday-to-Friday basis, the FBM KLCI advanced 12.53 points to finish at 1,388.61 compared with 1,376.08 a week earlier.

On the index board, the FBM Emas Index increased 95.64 points to 10,247.62, the FBMT 100 Index added 94.49 points to 9,944.36, the FBM Emas Shariah Index edged up 129.72 points to 10,611.78, the FBM 70 Index rose 148.88 points to 13,584.71, and the FBM ACE Index gained 74.93 points to 5,125.76.

Sector-wise, the Financial Services Index improved 33.36 points to 15,173.32, the Industrial Products and Services Index ticked up 2.88 points to 160.79, and the Energy Index firmed 2.59 points to 793.89, but the Plantation Index slid 38.10 points to 6,648.54.

Weekly turnover grew to 15.97 billion units valued at RM10.49 billion from 12.70 billion units valued at RM6.75 billion in the preceding holiday-shortened trading week.

The Main Market volume increased to 10.74 billion shares worth RM9.24 billion compared with 8.20 billion shares worth RM5.71 billion in the previous week.

Warrant turnover was slightly higher at 1.76 billion units valued at RM277.45 million versus 1.44 billion units valued at RM203.22 million last week.

The ACE Market volume widened to 3.45 billion shares worth RM971.82 million from 3.06 billion shares worth RM831.53 million previously. – Bernama, June 17, 2023