Bursa to remain softer next coming week

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KUALA LUMPUR: Against the backdrop of a slowdown in global growth, the FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to trade softer and within a tight range of between 1,680 points and 1,700 points next week.

Affin Investment Bank vicepresident/ head of Retail Research Dr Nazri Khan said the local market would continue to remain volatile in the absence of market moving factors at home and abroad.

“Bursa is likely to copy regional weaknesses after the International Monetary Fund cut the global growth outlook which saw commodity prices falling on concerns over weaker demand.

“We believe the local equity market may have a choppy time as investors price in concerns over the weaker prospects for global economic growth,” he told Bernama.

Given the strong foreign inflow of funds and higher cash holdings of domestic institutional funds, Nazri said the impending general elections would offer modest bargain hunting activity and this should prevent the FBM KLCI from falling below the 1,700 points support level.

On a Friday-to-Friday basis, the benchmark FBM KLCI ended 7.75 points higher at 1,706.28 as the underlying sentiment still remained intact.

The Finance Index soared 83.91 points to 15,983.9, the Plantation Index rose 28.7 points to 8,143.24 and the Industrial Index added 3.83 points to 2,902.47.

The FBM Emas Index gained 40.63 points to 11,667.64, FBM Mid 70 increased 13.8 points to 12,931.44 but the FBMT100 slipped 6.23 points to 11,449.02 and the FBM Ace Index dropped 64.39 points to 3,986.29.

Weekly turnover declined to 4.187 billion shares, worth RM8.264 billion, from last week’s 5.535 billion shares valued at RM9.124 billion.

Main market volume fell to 3.475 billion shares, worth RM8.165 billion, from 4.674 billion units, valued at RM9.01 billion, registered last week.

The ACE market volume eased to 542.592 million shares, worth RM78.377 million, from 656.884 million shares, valued at RM91.183 million, recorded in the previous week.

Warrants decreased to 160.796 million shares, worth RM14.687 million, against last week’s 191.441 million units valued at RM14.622 million.  — Bernama