KUALA LUMPUR: Bursa Malaysia is expected to trend lower driven by falling regional markets on the absence of a stimulus move by the Bank of Japan and relatively hawkish minutes of the US Federal Reserve meeting.
However, Affin Hwang Investment Bank vice-president and Retail Research head Datuk Dr Nazri Khan Adam Khan said positive local sentiments would likely support the market.
“These include the appointment of a new Bank Negara Governor which augurs well for the confidence of foreign investors that would lift the ringgit, and the National Transformation Programme (NTP), which has exceeded expectations across the board.
“This (NTP) is reflected in the Gross Domestic Product, which grew an average 5.6 per cent annually from 2010 to 2015 despite the challenging external environment,” said Nazri.
On the technical front, the local bourse will trend lower temporarily to correct its overbought situation, he said.
“With the underlying trends of the strengthening ringgit and crude oil prices, we sense a good buy on a weakness investment strategy now, especially on emerging trading interest in Plantation and Oil & Gas stocks,” he told Bernama.
On a weekly basis, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) fell by 45.24 points to 1,672.72 from 1,717.96 last week.
The FBM Emas Index tumbled 300.47 points to 11,638.02, the FBMT100 Index reduced 293.79 points to 11,334.19 and the FBM Emas Syariah Index was 278.76 points lower at 12,208.99.
On a sectoral basis, the Finance Index dropped 321.35 points to 14,587.30, the Plantation Index eased 40.01 points to 7,710.85 and the Industrial Index slid 96.85 points to 3,174.10.
Weekly turnover leaped to 9.77 billion units valued at RM10.24 billion from 8.6 billion units valued at RM9.25 billion last week.
Main market volume rose to 7.20 billion shares valued at RM9.79 billion from 6.37 billion shares valued at RM8.89 billion previously.
Warrant turnover advanced to 1.01 billion units worth RM130.58 million from 920.23 million units worth RM110.71 million last Friday.
The ACE market increased to 1.54 billion shares valued at RM324.49 million from 1.3 billion shares valued at RM259.39 million last week. — Bernama