KUALA LUMPUR – Bursa Malaysia is likely to continue to trade sideways next week, with the benchmark index expected to be trapped between 1,660 and 1,680 points due to the weak market sentiment, said Affin Hwang Investment Bank.
Its President/Head of Retail Research, Datuk Dr Nazri Khan Adam Khan, said concerns over the struggling Deutsche Bank will weigh down the stock markets globally.
“Investors are concerned about the financial issue faced by the German lender, which was fined US$14 billion (US$1=RM4.14) by the US Justice Department over the selling of mortgage-backed securities,” he told Bernama today.
The San Francisco-based Wells Fargo’s sham accounts scandal, coupled with Federal Reserve’s readiness to increase interest rates will also affect the stock market, he said.
However, Nazri said, investors were hoping to see the global oil prices improve further and boost the local bourse in the long run.
“As Malaysia is among the oil exporter countries, any news about the higher oil prices will be the catalyst to cushion our market,” he said.
The Organisation of the Petroleum Exporting Countries’ decision to limit oil production had lifted the commodity’s prices, causing the prices to increase by more than five per cent, he said.
Also, Nazri said, investors hoped that the government will do something to support the businesses and provide investor confidence.
For the week just-ended, the benchmark FTSE Bursa Malaysia KLCI declined 18.44 points to 1,652.55 compared with 1,670.99 last Friday.
On a week-to-week basis, the FBM Emas Index eased 122.64 points to 11,687.58, FBMT 100 Index decreased 124.7 points to 11,387.09 and the FBM Emas Syariah Index was 135.54 points weaker at 12,348.18.
On a sectoral basis, the Finance Index declined 90.13 points to 14,158.29, Industrial Index gave up 34.16 points to 3,110.02 and the Plantation Index was 38.24 points lower at 7,920.10.
Weekly turnover improved to 8.3 billion units worth RM9.4 billion from 8.2 billion units worth RM9.21 billion last Friday.
Main market volume advanced to 5.54 billion units worth RM8.91 billion compared with 5.14 billion units worth RM8.67 billion last week.
Warrant turnover fell to 1.44 million units valued at RM275.02 million from 1.93 billion units valued at RM359.65 million.
The ACE market rose to 1.29 billion shares worth RM171.26 million from 1.16 billion shares worth RM168.48 million.
\The market will be closed on Monday for Awal Muharram.