KUALA LUMPUR: Shares on Bursa Malaysia are expected to trade sideways next week, driven by the surprised hint from the US Federal Reserve (Fed) that a December or January taper could be on the cards.
Affin Investment Bank vice president/head of Retail Research, Dr Nazri Khan, said given Wall Street’s weakness, the local market was expected to see a temporary volatile swing trades with the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) to be range-bound between 1,800 and 1,820 levels.
“The local bourse is likely to stay in profit-taking consolidation mode temporarily to correct near-term overbought momentum after a good bull run on cautious trade averaging 1.7 bilion shares, or RM1.8 billion a day,” he told Bernama.
However, he said, the weakness was seen as temporary as FBM KLCI should regain a new high given the improved macro condition seen in the US and Europe along with the marked recovery seen in commodities.
For the week just-ended, shares were volatile.
It declined on profit-taking before rebounded on short-covering.
On a Friday-to-Friday basis, the FBM KLCI fell 7.16 points to 1,810.41 and the Finance Index dipped 200.27 points to 16,654.53.
The Plantation Index advanced 73.82 points to 8,615.58 and the Industrial Index improved 8.98 points to 3,136.89.
The FBM Emas Index lost 49.48 points to 12,586.94, FBMT100 Index fell 52.77 points to 12,310.9 and the FBM 70 Index was 74.25 points lower at 14,290.6.
The FBM ACE Index, however, chalked up 199.92 points to 5,746.29.
Weekly total turnover rose to 8.97 billion shares worth RM9.35 billion from 8.59 billion shares worth RM8.4 billion last week.
The Main Market volume increased to 6.58 billion units valued at RM8.79 billion from 6.56 billion units valued at RM8.028 billion previously.
Warrants turnover surged to 219.19 million shares worth RM20.52 million 182.17 million shares worth RM20.54 million last Friday.
The ACE market volume improved to 2.16 billion units valued at RM535.73 million from 1.83 billion units valued at RM353.76 million previously. — Bernama
FBM KLCI
THE FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) futures contracts are likely to sideways next week, tracking the volatile cash market, dealers said.
Affin Investment Bank vice-president/head of Retail Research, Dr Nazri Khan, said the local market was expected to see choppy sideways trading ahead, driven by the surprised hint from the US Federal Reserve that a December or January taper could be on the cards.
“We expect the local market to see temporary volatile swing trades with FBM KLCI to range bound between 1,800 and 1,820,” he told Bernama.
On a Friday-to-Friday basis, November 2013 lost 1.5 points to 1,813 and December 2013 dropped 3.5 points to 1,811.5 while March 2014 was unchanged at 1,806.
During the week, October 2014 ended at 1,806.5 while June 2014 was introduced at 1,804. — Bernama
Turnover improved to 114,120 lots from 28,312 lots last week while open interest fell to 44,786 contracts from 51,988 contracts previously.
Meanwhile, the benchmark FBM KLCI eased 7.16 points to 1,810.41 compared to 1,817.57 last Friday.
KLIBOR
THE three-month Kuala Lumpur Interbank Offered Rate (Klibor) futures contracts on Bursa Malaysia Derivatives are expected to remain quiet next week in the absence of fresh leads, dealers said.
For the week just-ended, the Klibor futures remained flat with one contract month traded.
In the previous week, turnover stood at 10 lots, while open interest was flat at 5,755 contracts. — Bernama
On a week-to-week basis, spot month November, December and January 2013 all remained pegged at 96.79, while March 2014 was pegged at 96.79.
The underlying three-month Klibor stood at 3.21 per cent.