KUALA LUMPUR: Share prices on Bursa Malaysia are anticipated to undergo a roller-coaster ride next week as sentiment continues to be buoyed by the gloomy global economic outlook.
Affin Investment Bank, head of retail research, Dr Nazri Khan said the FBM KLCI was likely to range between 1,350 and 1,400 next week.
“In fact, the most serious concern affecting emerging markets is the fact that China may have decelerated its economic momentum,” he told Bernama.
He said a serious weakness in Chinese manufacturing has raised concerns that China was not growing fast enough to fill the vacuum left by the United States.
The collapse of the share market in China, from its high last year, along with other large emerging markets, he said, was a clear early warning that the global economy was slowing down.
“Going forward, we believe further development on Europe’s decision to enlarge the European Financial Stability Facility coupled with US Federal Reserve Chairman Ben Bernanke’s statement on creative economic policy would serve as the major catalyst for global equities next week,” he said.
On the positive side, Dr Nazri said, the upcoming budget, to be unveiled on Oct 7, could give some momentum.
“Possible announcements on extending the retirement age for private sector employees and further liberalisation policies will be positive for the local market,” he said.
For the week just-ended, Bursa Malaysia was on an upward trend, with investors tracking gains in regional markets on renewed hopes that European officials will take bold steps to resolve Europe’s debt crisis.
On a week-to week basis, the key FBM KLCI ended 21.19 points higher at 1,387.13, from 1,365.94, registered last Friday.
The FBM Emas increased 163.95 points to 9,397.57, the FBMT100 gained 179.15 to 9,253.74, the FBM Ace Index rose 6.13 points to 3,597.95 and the FBM70 Index advanced 348.30 points to 10,015.02.
The Finance Index added 100.73 points to 12,659.28, the Plantation Index perked 81.93 points to 7,074.09 while the Industrial Index was up 19.99 points at 2,546.43.
Total weekly volume increased to 4.825 billion shares, worth RM8.11 billion, from 4.039 billion shares, worth RM7.481 billion, recorded last week.
Main market turnover rose to 3.771 billion shares, valued at RM7.999 billion, from 3.04 billion units, valued at RM7.354 billion, registered last week.
Warrants increased to 340.005 million units, valued at RM19.531 million, from 324.911 million units, valued at RM16.896 million, transacted last week.
Volume on the ACE market increased to 687.764 million units, worth RM80.966 million, from 638.183 million units, worth RM86.892 million, registered last week. — Bernama