KUALA LUMPUR – Bursa Malaysia is likely to trend sideways next week, with the benchmark index to move between 1,630 and 1,650 points on lack of catalysts coupled with the US Federal Reserve System’s (Fed) interest rate increases.
Affin Hwang Investment Bank Vice-President/Head of Retail Research, Datuk Dr Nazri Khan Adam Khan, said the Fed decision had sparked off an outflow of foreign capital from emerging markets.
“Fed Chair Janet Yellen’s announcement on 25-basis point increase had put pressure on the equities, especially from the emerging markets with large external funding,” he told Bernama.
On the local front, Nazri said, retail institutions would still take the lead next week as foreign capital outflows from emerging markets had also hit the local market.
He said Bursa Malaysia also lacked catalysts to follow through due to holiday mood.
“The stocks were just moving up and down amid thin trading and with no certain direction,” he said.
Another dealer said any gains next week would encourage investors to lock in profits, as there were lack of catalysts to follow through.
On a week-to-week basis, the benchmark FBM KLCI fell 3.63 points to 1,637.79 from 1,641.42 last Friday, FBM Emas Index plunged 21.34 points to 11,452.50, FBMT 100 Index declined 1,180.35 points to 10,029.23 and the FBM Emas Syariah Index was 19.63 points lower at 11,993.44.
The FBM Ace advanced 6,482.92 points to 11,189.35. The FBM 70 dwindled 50.56 points to 13,094.16.
On a sectoral basis, the Finance Index gained 4.11 points to 14,356.54, Industrial Index was down 21.05 points to 3,084.15 and the Plantation Index rose 14.77 points to 7,742.04.
Weekly turnover decreased to 5.29 billion units worth RM6.67 billion from 5.59 billion units worth RM7.25 billion registered last Friday.
Main market volume declined to 3.41 billion shares valued RM6.39 billion from 3.63 billion shares valued at RM6,92 billion last week.
Warrant turnover slipped to 895.13 billion units valued at RM171.32 million from 1.1 billion units valued at RM211.57 million last week.
The ACE market went up to 967.72 million shares worth RM102.69 million from 827.3 million shares worth RM109.01 million last week.