Bursa likely to see CAUTIOUS trading next week

KUALA LUMPUR – Bursa Malaysia is likely to see cautious trading next week with sentiment weighed down by bearish internal developments, especially falling commodity prices and a weaker ringgit, a dealer said.

Affin Hwang Investment Bank Vice-President/Retail Research Head Datuk Dr Nazri Khan Adam Khan said the weak Nikkei Malaysia Manufacturing Purchasing Managers’ Index (PMI) which stood at 47.4 in August (July: 48.1) had also hurt investor sentiment.

The index is an indicator of manufacturing performance, whereby any figure greater than 50.0 indicates overall improvement of sector operating conditions.

“Bursa Malaysia is likely to continue tracking its regional peers and Wall Street’s performance which is expected to have a downside correction.

“We believe the local equity market may have a choppy time as investors price in concerns over the weaker prospects for global economic growth,” he told Bernama.

Another dealer said the weak US non-farm payrolls which rose by just 151,000 jobs last month, compared to expectations of 180,000 and an unemployment rate unchanged at 4.9 per cent, could slash any interest rate hike this month by the Federal Reserve.

For the week just-ended, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) firmed 1.24 points to 1,671.79, as investors remained on the sidelines ahead of the US job data release, weaker ringgit and lower oil prices.

On a week-to-week basis, the FBM Emas Index fell 50.61 points to 11,750.81, the FBMT 100 Index declined 51.82 points to 11,462.76 and the FBM Emas Shariah Index was 48.47 points lower at 12,391.47.

On a sectoral basis, the Finance Index fell 66.91 points to 14,379.36 and the Industrial Index shed 18.52 points to 3,134.76.

The Plantation Index advanced 4.75 points to 7,811.42.

Weekly turnover decreased to 6.71 billion units worth RM7.24 billion from 8.85 billion units worth RM8.26 billion last week.

Main market volume fell to 4.03 billion shares worth RM5.76 billion from 5.50 billion shares valued at RM7.71 billion.

Warrant turnover slid to 1.43 billion units valued at RM210.43 million from 1.97 billion units worth RM289.18 million.

The ACE market declined to 1.26 billion shares worth RM171.67 million from 1.39 billion shares valued at RM264.78 million. — Bernama

– Malay Mail