Bursa Malaysia to move sideways next week

KUALA LUMPUR: Bursa Malaysia is likely to trade sideways between 1,730 and 1,750 next week on lack of catalysts, said an analyst.
Inter-Pacific Securities Head of Research Pong Teng Siew said the lacklustre trading would likely continue for the whole month since April was a transition month following the end of the first quarter of the year.
"In April, there are no corporate results. Some of the listed companies may announce their results by May," he said, adding the US airstrikes on Syria would not disturb the market too much.
Meanwhile, Hong Leong Investment Bank said the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) and heavyweights were likely to consolidate but it anticipated plenty of catalysts to keep the market warm for the second quarter.
"The focus will likely flow on lower liners with catalysts such as restructuring theme, construction jobs flows and property re-rating," it said in a note recently.
The local bourse was traded mostly lower in the week just-ended sans market moving news, in anticipation of the outcome from the meeting between US President Donald Trump and China President Xi Jinping late this week, as well as the US' one-off missile strikes on Syria.
On a week-to-week basis, the FBM KLCI added 1.63 points to 1,741.72 from 1,740.09.
The FBM Emas Index rose 51.67 points to 12,413.36, the FBMT 100 Index was up 33.87 points to 12,040.56, and the FBM Emas Syariah Index improved 71.59 points to 12,882.93.
The FBM 70 surged 126.28 points to 14,676.75 and the FBM Ace soared 366.46 points to 6,193.94.
On a sectoral basis, the Finance Index put on 44.37 points to 15,704.04 and the Industrial Index added 4.02 points to 3,258.44, but the Plantation Index was 38.74 points weaker at 8,163.78.
Weekly turnover widened to 20.73 billion units worth RM15.29 billion from 16.78 billion units worth RM12.78 billion last week.
Main Market volume expanded to 14.20 billion shares valued at RM14.18 billion from last week's 12.01 billion shares valued at RM12.04 billion.
Warrant turnover was slightly higher at 1.09 billion units worth RM143.59 million from 1.04 billion units worth RM141.24 million.
The ACE Market went up to 5.39 billion shares worth RM959.57 million from 3.67 billion shares valued at RM590.18 million previously.
Gold futures contract on Bursa Malaysia Derivatives is expected to trade higher next week on bullish demand for the precious metal as a safe-haven asset.
FXTM Research Analyst Lukman Otunuga said the US military's airstrike on Syria had pushed investors to stay clear of riskier assets thus providing gold and other safe-haven assets a solid boost.
He said although the summit between US President Donald Trump and his Chinese counterpart Xi Jinping had been somewhat overshadowed by the attack, investors might still pay very close attention to the progress of the meeting between these two world leaders.
"While Trump has said that he has developed a friendship with Xi, this may be tested today as the two leaders discuss trade, North Korea, and other important market moving issues.
"A situation where the outcome of the meeting seems unfavourable and unsuccessful could intensify the risk aversion ultimately boosting gold," he said.
The global gold futures market rallied after the missile attacks with the benchmark US Commodity Exchange's gold futures (COMEX) traded more than one per cent on Friday to hit a five-month high as investors sought safe-haven assets.
Phillip Futures Dealer, Chua Zheng Liang, said tension from the attack, which has potentially escalated tensions with Syrian allies Russia and Iran, would further drive the local market.
"We expect the gold prices will be bullish amid the tensions and the weak ringgit would also provide support to local gold prices," he told Bernama.
For the week just-ended, gold on Bursa Malaysia Derivatives started the week higher but trended lower on Wednesday due to mild buying momentum amid weaker performance of COMEX gold futures during Asian trading hours.
The pattern reversed on Thursday onwards backed by the weakening ringgit and soured riskier assets sentiment.
The gold futures finished the week on a bullish note with spot month April 2017 hitting its highest level of RM179.80 a gramme this year.
On a Friday-to-Friday basis, April 2017 jumped RM3.95 or 79 ticks to RM179.80 a gramme, March 2017 chalked up 77 ticks to RM179.35 a gramme and June 2017 rose 65 ticks to RM178.85 a gramme.
Newly-introduced contract month, July 2017, ended the week at RM178.95 a gramme.
Turnover doubled to 106 lots worth RM1.89 million from 57 lots worth RM904,990 last week, while open interest widened to 328 contracts compared to 301 contracts previously. — Bernama