Bursa Malaysia likely to see CAUTIOUS trading next week

KUALA LUMPUR – Rising concerns over the Federal Open Market Committee (FOMC) and Bank of Japan’s (BoJ) meetings next week coupled with a pre-Budget rally are expected to keep markets jittery, with Bursa Malaysia likely to see cautious trading next week.

Affin Hwang Investment Bank Vice-President and Head of Retail Research Datuk Dr Nazri Khan Adam Khan said these three factors are expected to cause uncertainty in the market.

“However, I expect the Federal Reserve to keep interest rates unchanged and as for the BoJ, they might not announce any new stimulus,” he told Bernama.

He also added that the local bourse should hover between 1,650 and 1,660 points in the near term.

As for the country’s 2017 Budget, rumours and market talk would also influence the market as most eyes are glued on the feedback from the wishlists, Nazri said.

The market was closed last Monday and Friday for Hari Raya Aidiladha and Malaysia Day respectively.

For the week just ended, the benchmark FTSE Bursa Malaysia KLCI was 33.45 points lower at 1,652.99.

The barometer index touched its five-week low of 1,661.39 last Wednesday, weighed down by weak sentiment as most traders were away on the holiday-shortened week.

On a week-to-week basis, the FBM Emas Index fell 186.48 points to 11,674.44, the FBMT 100 Index decreased 183.56 points to 11,379.44 and the FBM Emas Shariah Index was 178.69 points weaker at 12,327.23.

On a sectoral basis, the Finance Index dipped 294.37 points to 14,216.88 and the Industrial Index shed 52.47 points to 3,099.23.

The Plantation Index also fell by 41.91 points to 7,846.61.

Weekly turnover eased to 4.09 billion units worth RM5.65 billion, from 7.89 billion units worth RM7.49 billion recorded last week.

Main market volume fell to 2.78 billion shares worth RM5.43 billion, from 4.61 billion shares valued at RM7.03 billion transacted previously.

Warrant turnover slid to 639.56 million shares valued at RM123.05 million, from 1.26 billion units valued at RM187.66 million.

The ACE market slipped to 462.11 million shares worth RM97.94 million, from 2.01 billion shares worth RM270.04 million registered last week. ― Bernama