KUALA LUMPUR: The current downtrend in the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI), and expected to average 1,730 points next week, presents a good buying opportunity for quality bluechips.
“I recommend investors to buy construction and technology stocks as they are major benefactors of the recently announced Eleventh Malaysia Plan,” said Affin Hwang Investment Bank vice-president and head of retail research, Datuk Dr Nazri Khan.
Commenting on the FBM KLCI’s performance, he said despite the setback, Malaysia’s fundamentals remained strong with low inflation and a commendable 6.0 per cent credit growth.
“Furthermore, for the past two months, the Goods and Services Tax revenue collected amounted to RM2.5 billion.
“This should ease the pressure on our sovereign rating,” he added.
Nazri told Bernama that for the whole month of May, the FBM KLCI had shed 83 points or 4.5 per cent, due to the weakening ringgit, the global oil price slump as well as political uncertainty revolving around the 1Malaysia Development Bhd.
On the external front, investor sentiment were negatively impacted following an announcement by the Federal Reserve on a possible interest rate hike this year as well as the current messy situation in Greece.
Meanwhile, on a Friday-to-Friday basis, the benchmark FBM KLCI shed 39.98 points to 1,747.52 from 1,787.5.
The FBM Emas Index was down 256.04 points to 12,097.37, the FBMT100 Index declined 243.49 points to 11,784.11 and the FBM Emas Syariah Index dipped 261.48 points to 12,576.45.
The FBM 70 lost 174.96 points to 13,278.88 and the FBM Ace shed 342.88 points to 6,548.59.
Sector-wise, the Finance Index fell 352.2 points to 15,595.57, the Plantation Index slid 223.51 points to 7,268.23 and the Industrial Index shed 74.39 points to 3,183.62.
Weekly turnover declined to 9.07 billion units worth RM11.63 billion from 10.26 billion units worth RM9.94 billion previously.
Main market volume decreased to 5.19 billion units worth RM10.53 billion from 6.62 billion units worth RM8.97 billion last week.
Warrants turnover widened to 935.53 million units worth RM306.05 million from 575.62 million units worth RM137.51 million recorded.
The ACE market declined to 2.92 billion shares worth RM788.69 million from 3.06 billion shares worth RM829.09 million previously. — Bernama