Bursa Malaysia to trend cautiously next week

KUALA LUMPUR: Share prices on Bursa Malaysia is expected to move sideways in cautious trading next week, with the benchmark index moving between 1,770 and 1,780 points.
Affin Hwang Investment Bank Vice-President and Head of Retail Research Datuk Dr Nazri Khan Adam Khan said the market would remain cautious following the tension in the Korean Peninsular which would continue to take centre stage and weigh on trading sentiment.
"North Korea launched another nuclear test recently, which sparked negative sentiment in most Asian markets this week. The tension is expected to continue affecting market sentiment next week," he added.
Dr Nazri said regional markets may also be sluggish, dampened by the bearish performance on Wall Street.
However, he said the ringgit's strength coupled with the spillover effect from the meeting between the Prime Minister Datuk Seri Najib Tun Razak and United States President Donald Trump lent support to the market.
"We are expecting the spillover (from the meeting) to begin showing results in the medium-term.
"Based on these, shares on Bursa Malaysia are expected to be well supported by good local sentiment while the external headwinds could spark negative sentiment, prompting the market to move sideways," he told Bernama.
For the week just-ended, the benchmark FTSE Bursa Malaysia KLCI gained 6.43 points to 1,786.33 from 1,779.9 last week.
Bursa Malaysia was on the uptrend throughout the week, supported by positive progress made by Felda Global Ventures Holdings Bhd in resolving its internal issues.
The local bourse also gained support from news that North Korea held back on its missile test, pushing the index to end at a near three-month high on Tuesday.
The benchmark index, however, retreated on Wednesday, sparked by profit taking and losses in Apple-related counters.
President Donald Trump's comment on the United Nations sanctions against North Korea, which he described as a "very small step", further depressed the local bourse, along with most of its regional peers.
On a weekly basis, the FBM Emas Index was 34.40 points higher at 12,723.68 and the FBMT 100 Index rose 30.42 points to 12,387.94.
The FBM Emas Syariah Index advanced 41.84 points to 12,927.98, the FBM 70 shed 15.41 points to 15,246.88 and the FBM Ace gained 43.02 points to 6,692.60.
On a sectoral basis, the Finance Index shot up 102.45 points to 16,828.98, the Industrial Index edged up 33.83 points to 3,242.55 and the Plantation Index added 80.45 points to 7,970.66.
Total turnover increased to 13.13 billion units, valued at RM10.77 billion, from last Friday's 10.34 billion units, worth RM8.66 billion.
Main Market volume widened to 7.71 billion shares, worth RM9.86 billion, from 6.62 billion shares, valued at RM7.98 billion, previously.
Warrants' volume rose to 789.15 million units, worth RM102.77 million, from 633.87 million units, valued at RM81.02 million recorded last Friday.
The ACE Market turnover jumped to 4.59 billion shares, valued at RM876.93 million, from 3.01 billion shares worth RM590.80 million.
Gold futures contract on Bursa Malaysia Derivatives is expected to consolidate mode ahead of The Federal Open Market Committee (Fomc) meeting which will decide on the direction for US interest rates, said Phillip Futures Sdn Bhd Dealer Chu Ching Yong.
Investors' are now focusing on the outcome of the meeting, however, analysts say that a rate hike next week was unlikely as Fomc members needed time to prepare for a hike.
On a Friday-to-Friday basis, Sept 2017, Oct 2017 and Nov 2017 erased 33 ticks each to RM179.20, RM178.20, RM178.90 and RM177.80 per gramme, respectively.
Weekly turnover fell to 22 lots, worth RM412,780, from 24 lots, valued at RM436,110, recorded in the previous week while open interest widened to 762 contracts from 145 contracts last Friday. — Bernama