KUALA LUMPUR: Bursa Malaysia is expected to consolidate with sentiment weighed down by bearish external developments, especially the falling global oil prices.
Affin Hwang Investment Bank vice-president/head of Retail Research Datuk Dr Nazri Khan Adam Khan told Bernama that the weak US jobs data and weak manufacturing data in Japan as well as the absence of plans to expand stimulus from the Bank of Japan would hurt investor sentiment.
It was reported that the bank’s Governor Haruhiko Kuroda has ruled out the idea of using “helicopter money” — or directly underwriting the budget deficit — to combat deflation.
“The downgraded forecast for global growth by the International Monetary Fund to 3.1 per cent in 2016 and 3.4 per cent in 2017 will also dampen investor sentiment in the near term,” he said.
On domestic factors, Nazri said the depreciation of the ringgit would also drag down the local bourse’s performance.
“Immediate support is expected to be between 1,640 and 1,630 points while key resistance should be at the 1,660 and 1,680-point level,” he added.
On a Friday-to-Friday basis, the FBM KLCI fell 10.98 points to 1,657.42 from 1,668.4 recorded last week.
The FBM Emas Index improved 143.52 points to 11,611.17, the FBMT 100 Index rose 131.34 points to 11,307.22 and the FBM Emas Shariah Index was 197.15 points higher at 12,216.36.
On a sectoral basis, the Finance Index fell 172.67 points to 14,101.64, the Industrial Index increased 38.88 points to 3,133.08 and the Plantation Index improved 57.13 points to 7,574.50.
Weekly turnover increased to 8.71 billion units worth RM8.41 billion from 8.18 billion units worth RM9.37 billion last week.
Main market volume rose to 5.80 billion shares worth RM7.89 billion from 5.44 billion shares worth RM8.84 billion previously.
Warrant turnover slid to 1.14 billion units valued at RM166.39 million from 1.22 billion units valued at RM197.75 million last week.
The ACE market increased to 1.75 billion shares worth RM344.53 million from 1.49 billion shares worth RM320.29 million previously. — Bernama