KUALA LUMPUR: The FTSE Bursa Malaysia KLCI (FBM KLCI) is likely to stage a short term correction, weighed down by global equities and commodities dip as well as a risk-off vibe across most safe haven assets.
Affin Investment Bank vice-president and head of Retail Research Dr Nazri Khan said a continuation of the bearish tone was also in the wake of the second local airline disaster and the strong rally over the past five months.
The FBM KLCI has gained 5.6 per cent between February and July. Malaysia Airlines flight MH17 crashed at the Ukraine-Russia border early Friday.
Based on the last case, Nazri said Bursa Malaysia dipped 30 points or 1.6 per cent for eight days before the market stabilised and improved.
“Overall, despite the external blips, we expect the weakness to be temporary and FBM KLCI to maintain its slow bullish edge and defensive appeal of Bursa Malaysia,” he told Bernama.
For the week just-ended, the FBM KLCI declined 10.18 points to 1,872.97 from 1,883.15 previously.
The Finance Index fell 18.72 points to 17,451.85, the Plantation Index eased 149.24 points to 9,012.83 and the Industrial Index declined 4.78 points to 3,239.03.
The FBM Emas Index declined 54.6 points to 13,062.74, the FBMT100 Index was 68.77 points lower at 12,653.36, the FBM 70 lost 78.04 points to 14,345.72 but the FBM Ace climbed 97.5 points to 6,851.83.
Weekly turnover declined to 6.92 billion shares, valued at RM9.005 billion, from 8.89 billion shares, valued at RM10.88 billion, recorded last week.
Main market volume decreased to 7.509 billion units, worth RM8.644 billion, from 7.1 billion units, worth RM10.52 billion, registered previously.
Warrants turnover went down to 242.98 million units, valued at 34.82 million, from 380.77 million units, valued at RM77.5 million, transacted last Friday.
The ACE market volume appreciated to 1.224 billion shares, worth RM303.15 million, from 1.07 billion shares, worth RM231.9 million, traded last week. — Bernama