KUALA LUMPUR: Greece’s referendum on July 5 is expected to weigh heavily on global equity markets including Bursa Malaysia’s performance.
This is despite the stable rating by Fitch Ratings towards Malaysia’s economic outlook.
Affin Hwang Investment Bank vice-president and head of Retail Research Datuk Dr Nazri Khan said the broader market had started to deteriorate after last week’s rally.
He said the ringgit depreciated 0.3 per cent against the greenback despite the upgrade status and this could potentially weaken investors’ sentiment.
“The local bourse should find support between the 1,700 points and 1,680 points-level in the near-term,” he told Bernama.
Nazri added that investors would remain jittery and stay on the sidelines because of Greece’s possible exit from the eurozone and ahead of the outcome of the three-day US Federal Open Market Committee meeting, beginning Monday, which may decide on raising interest rates.
Meanwhile, for the week just-ended, sentiment was depressed on the first two days but rose sharply on Wednesday after Fitch Rating Agency announced a stable outlook for the Malaysian economy.
The index fell to its lowest level in five months on Monday to 1,691.92 as the local bourse was impacted by concerns over Greece’s debt default and the likelihood of a downgrade rating by Fitch.
The FTSE Bursa Malaysia KLCI finished sharply higher at 1,734.24, up 23.77 points, from last Friday’s 1,710.47.
The FBM Emas Index surged 125.45 points to 11,958.45, the FBMT100 Index soared 134.14 points to 11,644.80, the FBM Emas Shariah Index chalked up 124.71 points to 12,431.07 and the FBM 70 improved 54.65 points to 12,881.76. However, the FBM Ace dropped 104.55 points to 6,293.80.
Sector-wise, the Finance Index advanced 85.17 points to 15,599.39, the Plantation Index jumped 203.5 points to 7,461.84 and the Industrial Index rose 62.5 points to 3,202.74.
Weekly turnover added to 8.27 billion units, worth RM9.37 billion, from 7.35 billion units, worth RM8.19 billion, traded previously. Main market volume slipped to 4.75 billion units, valued at RM8.39 billion, from 4.91 billion units, valued RM8.31 billion, registered last week.
Warrant turnover widened to 848.35 million units, worth RM1.76 billion, from last week’s 848.35 million units worth RM225.53 million.
The ACE market narrowed to 1.49 billion shares, valued at RM608.59 million, versus 1.84 billion shares, worth RM606.91 million, recorded last week. — Bernama