Bursa Malaysia to be WEAKER next week

KUALA LUMPUR – Bursa Malaysia is expected to be slightly weaker in the coming holiday-shortened week, amid mixed sentiment surrounding the global equity markets, a dealer said.

Affin Hwang Investment Bank Vice-President/Retail Research Head Datuk Dr Nazri Khan Adam Khan said sentiment was slightly bearish on the revived fear of the US interest rate increase in September following a strong US jobless data and consumer credit figures released last week.

The European Central Bank’s decision on Thursday, to keep its monetary policy stance unchanged, had sent disappointment across financial markets as the market expected more stimulus to improve liquidity, he said.

On the local front, Bank Negara Malaysia’s decision to keep the overnight policy rate at three per cent plus a weaker trade data for July were not seen as supporting the local market.

He said total trade fell 5 per cent while the trade balance was at its lowest in 21 months.

On the other hand, crude oil prices were uplifted last week following the large drawdown in US crude inventory data and recent talks by Russia and Saudi Arabia to stabilise oil prices, he said.

“However, the rise in crude oil price sentiment was not sufficiently strong to offset the US interest rate fear.

“As such, the local equity market is expected to trade cautiously and in a defensive mode next week with the support level seen between the 1,660 and 1,680 level and the resistance at 1,700.

“With the holiday shortened week the volume would not be inspiring next week,” he told Bernama.

The market will be closed on Monday and Friday next week for the Hari Raya Aidiladha and Hari Malaysia holidays, respectively.

For the week just-ended, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) firmed 14.65 points to 1,686.44.

On a week-to-week basis, the FBM Emas Index rose 110.11 points to 11,860.92, the FBMT 100 Index increased 100.24 points to 11,563 and the FBM Emas Shariah Index was 114.45 points higher at 12,505.92.

On a sectoral basis, the Finance Index jumped 131.89 points to 14,511.25 and the Industrial Index added 16.94 points to 3,151.70.

The Plantation Index advanced 77.10 points to 7,888.52.

Weekly turnover increased to 7.89 billion units, worth RM7.49 billion, from 6.71 billion units, worth RM7.24 billion, recorded last week.

Main market volume rose to 4.61 billion shares, worth RM7.03 billion, from 4.03 billion shares, valued at RM5.76 billion, transacted previously.

Warrant turnover slid to 1.26 billion units, valued at RM187.66 million, from 1.43 billion units worth RM210.43 million.

The ACE market surged to 2.01 billion shares, worth RM270.04 million, from 1.26 billion shares valued at RM171.67 million, registered last week. — Bernama