KUALA LUMPUR: Bursa Malaysia is likely to see volatile trading next week due to weak investor sentiment after the historic referendum, Brexit, that will break the UK from the European Union, dealers said.
Affin Hwang Investment Bank vice-president/Retail Research head, Datuk Dr Nazri Khan Adam Khan, said following the bearish performance of the global stocks, the FTSE Bursa Malaysia KLCI (FBM KLCI) could stage a correction with the 1,700-point level as the immediate target.
“At the moment investors are adopting a wait-and-see stand on the stock movements as they are cautious due to the Brexit.
“The investors are now shifting their interests to the safe haven assets such as bond and gold,” he told Bernama.
He said Bursa Malaysia was expected to trade at 1,600 level for the short term.
However, he said, its performance will also depend on the ringgit’s movements against the US dollar.
On the technical front, Kenanga Research head of Research, Chan Ken Yew, said the FBM KLCI would likely remain range-bound, so long as it was still capped below the 1,605-1,625 resistance.
“As indicators have weakened, we do not rule out further correction towards the expected level in the near term,” he said.
On a weekly basis, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) added 9.87 points to 1,634.05 from 1,624.18 last week.
The FBM Emas Index increased by 35.89 points to 11,393.31, FBMT100 Index gained 333.14 points to 11,393.31 and the FBM Emas Syariah Index was 41.54 points higher at 11,968.84.
On a sectoral basis, the Finance Index rose by 38.98 points to 14,074.91 and the Industrial Index was 17.72 points higher to 3,071.60. The Plantation Index eased 29.1 points to 7,539.27.
Weekly turnover advanced 2.33 billion units valued at RM2.3 billion from 1.12 billion units valued at RM1.42 billion last week.
Main market volume rose to 1.35 billion shares worth RM2.17 billion from 701.96 million shares worth RM1.36 billion previously.
Warrant turnover improved to 530.20 million units valued at RM127.60 million from 151.11 million units valued at RM22.23 million last Friday.
The ACE market added to 338.96 million shares worth RM61.84 million from 263.73 million shares worth RM37.87 million last week. — Bernama