Rangebound play expected to dominate trading on Bursa Malaysia next week
KUALA LUMPUR: Rangebound trading, prompted by global economic confidence, the withdrawal of the United Kingdom from the European Union (Brexit) and the health of the US job market, is expected to dominate sentiment on Bursa Malaysia next week.
The benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) could possibly trade between 1,635 and 1,655 before looking to retest its psychological resistance level of 1,700 in the near-term, said a senior equity trader.
"Near-term sentiment remains positive for the local market unless there is any unpredicted Brexit-related event or major upset from the US job market which will negatively affect the performance of Wall Street and subsequently the local market," he told Bernama.
Meanwhile, IQI Chief Economist Shan Saeed said global economic confidence was currently low but Bursa Malaysia would continue to entice portfolio investments.
"However, like many stock markets globally, local market will follow the international trends.
"Overall, the market is still very attractive for local and international players due to their fair valuation and in some cases, undervalued oil and gas stocks. An upside is very much on the cards," he said.
For the week just-ended, trading days were shortened as the local bourse was closed on Wednesday and Thursday for the Hari Raya Aidilfitri holidays.
Mild profit-taking emerged among selective heavyweight stocks on Friday.
On a weekly basis, the FBM KLCI erased just 1.68 points to 1,644.54 from last Friday's 1,646.22.
The FBM Emas Index declined 18.17 points to 11,467.65, the FBMT100 Index shed 17.55 points to 11,175.88 and the FBM Emas Syariah Index eased 35.77 points to 12,019.21.
The FBM Ace rose 4.02 points to 5,157.37 but the FBM 70 lost 42.78 points to 12,903.82.
Sector-wise, the Finance Index gained 40.31 points to 14,274.31, Industrial Index slipped 2.06 points to 3,094.20 and the Plantation Index trimmed 57.03 points to 7,517.37.
Despite the three-day trading week, weekly turnover rose to 2.87 billion units, worth RM3.37 billion, from last Friday's 1.13 billion units worth RM1.13 billion.
Main market volume expanded to 1.95 billion shares, valued at RM3.21 billion, from 876 million shares, worth RM1.09 billion, recorded last Friday.
Warrants' turnover leaped to 446.69 million units, worth RM75.04 million, from last week's 97.33 million units worth RM12.25 million.
The ACE market perked to 471.92 million shares, valued at RM89.36 million, from 153.01 million shares, worth RM23.39 million, previously. — Bernama