Bursa Malaysia Likely To Trade Range-Bound With Positive Bias Next Week
By Engku Shariful Azni Engku Ab Latif
KUALA LUMPUR, Aug 29 (Bernama) -- Bursa Malaysia is expected to remain range-bound within the 1,710–1,740 levels with a positive bias next week, an analyst said.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the local bourse’s performance would be supported by attractive valuations, healthy market participation and resilient domestic fundamentals.
“With valuations becoming more attractive following the recent weakness, we believe selective bargain hunting could provide support when trading resumes next week,” he told Bernama.
Meanwhile, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said Bursa Malaysia is expected to trade in relatively light volume next week.
He said the market faces a shortened trading week due to the public holiday on Monday, a state holiday on Tuesday and the ongoing school holidays.
“Trading activity could also remain subdued as some investors may shift attention towards global markets following the strong performance of US technology stocks,” he said.
Mohd Sedek said market attention will also centre on Federal Reserve chair Kevin Warsh’s speech at the Jackson Hole symposium on Friday night.
His remarks will be closely watched for forward guidance on the Fed’s monetary policy direction, particularly the outlook for inflation, interest rates and US Treasury yields.
“However, with Bursa Malaysia closed on Monday, the local market’s immediate reaction to the Jackson Hole outcome will be delayed.
“We therefore expect the impact to be reflected when trading resumes after the extended holiday break,” he said.
This week, Bursa Malaysia was closed on Aug 25 in conjunction with Maulidur Rasul.
On a Friday-to-Friday basis, the FBM KLCI declined 10.60 points to 1,725.88 from 1,736.48 a week earlier.
On the index board, the FBM Emas Index shed 67.65 points to 12,764.63, the FBM Top 100 Index lost 76.07 points to 12,574.85, and the FBM Emas Shariah Index slipped 89.70 points to 12,552.09.
The FBM ACE Index gave up 84.41 points to 5,249.38 and the FBM Mid 70 Index lost 104.15 points to 18,046.89.
By sector, the Energy Index inched up 1.35 points to 778.38, and the Industrial Products and Services Index went up 2.05 points to 189.27
However, the Plantation Index decreased 130.99 points to 9,309.66 and the Financial Services Index erased 21.93 points to 20,243.47.
The weekly turnover shrank to 16.70 billion units worth RM17.24 billion from 18.70 billion units worth RM15.92 billion in the prior week.
The Main Market volume edged down to 9.70 billion units valued at RM15.60 billion against 9.84 billion units valued at RM13.95 billion previously.
Warrants turnover weakened to 4.47 billion units worth RM636.22 million versus 5.60 billion units worth RM745.83 million last week.
The ACE Market volume declined to 2.52 billion units valued at RM993.49 million compared with 3.15 billion units valued at RM1.60 billion in the previous week.
-- BERNAMA