KUALA LUMPUR: Bursa Malaysia will likely decline next week as growing concerns over the 2019 novel coronavirus impact on global growth may dampen investors confidence in local equities.
A dealer said the FTSE Bursa Malaysia KLCI (FBM KLCI) is anticipated to trade within the range of between 1,535 and 1,550 levels, with a downside bias considering the lack of fresh positive leads.
“Sentiment across the region remained tepid on growing coronavirus fears. Investors have increasingly shifted to risk-off mode, reflecting heightened worries over the severity of the outbreak.
“However, losses might be capped as investors find comfort in the government’s (proposed) economic stimulus package to handle the impact of coronavirus,” he told Bernama.
With eight infection cases already reported in Malaysia, all of which involving Chinese nasionals, the dealer expects the government to inject a stimulus package of between RM5 bil and RM10 bil as early as mid-February to provide immediate relief to the affected sectors.
The World Health Organisation (WHO) has declared the outbreak as a Public Health Emergency of International Concern (PHEIC), following the second meeting of the Emergency Committee on the coronavirus.
Commenting on the development, Kenanga Research, in a note, said: “The WHO emphasised that the PHEIC was declared mainly due to concern over the possibility for the virus to spread to countries with a weaker health system and which are incapable of dealing with the outbreak.”
On a Friday-to-Friday basis, the FBM KLCI lost 41.75 points to 1,531.06 during the holiday-shortened week from 1,572.81 previously.
Bursa Malaysia and its derivatives were closed on Monday in lieu of the Chinese New Year holiday on Sunday.
On the scoreboard, the FBM Emas Index was 356.54 points lower at 10,890.12, the FBMT 100 Index declined 328.74 points to 10,703.59, the FBM ACE Index fell 303.18 points to 5,377.22, the FBM Emas Shariah Index shed 415.44 points to 11,551.70, and the FBM 70 declined 570.73 points to 13,651.50.23.
Sector-wise, the Financial Services Index erased 320.81 points to 14,782.26, the Plantation Index was 281.13 points weaker at 7,143.62 and the Industrial Products and Services Index eased 8.64 points to 143.31.
Weekly turnover rose to 12.65 billion units worth RM11.05 bil from 12.15 billion units worth RM9.30 bil in the previous week.
Main Market volume was higher at 8.31 billion shares worth RM9.93 bil from 7.34 billion shares worth RM8.22 bil.
Warrants turnover widened to 1.77 billion units worth RM309.02 mil from 1.72 billion units worth RM294.92 mil previously.
The ACE Market volume decreased to 2.56 billion shares worth RM804.78 mil from 3.08 billion shares worth RM790.80 mil in the previous week. – Feb 01, 2020, Bernama
