KUALA LUMPUR: Bursa Malaysia is expected to consolidate further with sentiment to be weighed down by external development, especially the US interest rate hike and China’s economic slowdown.
Affin Hwang Investment Bank vice-president/head of Retail Research Datuk Dr Nazri Khan Adam Khan said the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI), which slipped below its psychological level of 1,600, would find support level at 1,570 next week.
He said the US non-farm payroll data, released on Friday, would be the catalyst for the global financial market.
“If the US jobs data for August end on a negative note, it means the US economy is weak and surely the Federal Reserve will increase their rates.
“However, this could also be vice-versa,” he told Bernama.
On a weekly basis, the key index FBM KLCI finished 23.58 points weaker at 1,589.16 amid volatile trading pattern.
The four-day trading was weighed down by weak Purchasing Managers Index reports from Malaysia and China, lower commodity prices as well as weaker ringgit.
Nazri Khan said huge foreign capital outflow also partly aided the sluggish Bursa performance.
The local market was closed on Monday for the Merdeka Day holiday.
The FBM Emas Index trimmed 94 points to 10,882.04 and FBMT100 Index erased 108.38 points to 10,625.79 and FBM Emas Syariah eased 3.23 points to 11,430.11.
However, the FBM Ace soared 182.12 points to 5,129.2 and FBM 70 rose 64.3 points to 11,638.13.
Sector-wise, the Finance Index gave up 438.75 points for 13,924.63, Plantation Index lost 11.78 points to 6,813.29, but Industrial Index added 0.8 of a point to 3,065.89.
Weekly turnover shrank to 7.51 billion units worth RM7.84 billion from last week’s 11.74 billion units valued at RM12.16 billion.
Main market volume dwindled to 3.76 billion units worth RM6.71 billion from 6.42 billion units valued at RM10.73 billion last week.
Warrant turnover narrowed to 2.44 billion units worth RM817.17 million from 3.54 billion units valued at RM1.08 billion previously.
ACE market volume reduced to 1.31 billion units worth RM307.95 million from last week’s 1.76 billion units valued at RM342.95 million. — Bernama