KUALA LUMPUR: Share prices on Bursa Malaysia are likely to trade sideways and retest the 1,800 points level due to a slowing down in risk taking sentiment, the declining ringgit and falling commodity prices.
Affin Hwang Investment Bank vice-president and head of Retail Research, Datuk Dr Nazri Khan Adam Khan, said despite inching down slowly, the key index should maintain its bullishness over the medium-term amid firmer local sentiment.
He told Bernama, equity bulls remained largely unfazed by rising rates in the US, and as investor attention turned to Japan’s easing of monetary policy in the traditionally bullish year-end-quarter.
Nazri also said potential announcements, especially on the Bumiputera Economic Empowerment Agenda at the upcoming UMNO general assembly and focus on the rural areas of Sabah/Sarawak, will provide a catalyst to local construction and infrastructure government linked companies.
For the week-just-ended, the benchmark index closed 15.06 points lower at 1,809.13, mostly influenced by the performance of the regional markets well as local economic data.
The FBM Emas Index was 199.08 points lower at 12,477.93, the FBMT100 Index fell 161.84 points to 12,154.47, the FBM 70 tumbled 412.78 points to 13,523.71 and the FBM Ace lost 412.78 points to end the week at 13,523.71.
Sector-wise, the Industrial Index slid 19.79 points to 3,273.37, the Finance Index contracted 401.99 points to 16,192.97 and the Plantation Index eased 278.91 points to 8,195.37.
Weekly turnover narrowed to 868.22 million shares worth RM8.30 billion from the 9.95 billion shares worth RM8.98 billion last week.
Main market volume decreased to 5.19 billion units valued at RM7.36 billion from 5.79 billion units valued at RM7.98 billion previously.
The ACE market volume declined to 3.28 billion units valued at RM916.63 million from 3.88 billion units valued at RM962.25 million. Warrants turnover shrank to 199.88 million units worth RM18.83 million versus last week’s 246.5 million units worth RM27.44 million. — Bernama