KUALA LUMPUR: The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) is likely to consolidate sideways between 1,800 and 1,780 level, weighed down by the hawkish US Federal Reserve statement and weak global economic data.
Affin Hwang Investment Bank vice-president and head of retail research Datuk Dr Nazri Khan said the economic data included lower than expected figures on the US home sales, the US Manufacturing Purchasing Managers’ Index (PMI), the Germany Manufacturing PMI, and the French Manufacturing PMI.
On the local front, he said the monetary allocation under the 11th Malaysia Plan (11MP) and its focus on public and private investments should be a major catalyst in purchasing local stocks over the medium term.
In addition, he said the 11MP and its allocation on power sector would be able to provide support for the sideway weakness.
“We also note the consumer confidence index improved five points to 94 points in the first quarter of this year, according to the Nielsen Global Survey, suggesting that Malaysian consumers are generally confident with the economic conditions despite the Goods and Services Tax implementation and rising prices,” he told Bernama.
On a Friday-to-Friday basis, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) shed 24.42 points to 1,787.5 from 1,811.92 previously, due to profit-taking.
The FBM Emas Index was down 142.54 points to 12,353.41, the FBMT100 Index declined 143.73 points to 12,027.6 and the FBM Emas Syariah Index decreased 158.92 points to 12,837.93.
The FBM 70 lost 82.27 points to 13,453.84 and the FBM Ace shed 171.09 points to 6,891.47.
Sector-wise, the Finance Index fell 140.01 points to 15,947.77, and the Plantation Index slid 25.97 points to 7,491.74, while the Industrial Index shed 16.04 points to 3,258.01.
Weekly turnover rose to 10.26 billion units worth RM9.94 billion from 6.66 billion units worth RM8.95 billion, previously.
Main market volume increased to 6.62 billion units worth RM8.97 billion against 4.57 billion shares valued at RM7.99 billion last week.
Warrants turnover narrowed to 575.62 million units worth RM137.51 million from 576.82 million units worth RM208.96 million a week earlier.
The ACE market climbed to 3.06 billion shares worth RM829.09 million from 3.02 billion shares worth RM748.66 million, previously. — Bernama