BURSA Malaysia is expected to trade sideways next week, with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) to move between the 1,460 to 1,480 level amid the uncertain regional performance.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said technically, the FBM KLCI should see immediate support at 1,460 with resistance at 1,500.
The analyst said the short-term FBM KLCI market sentiment is reckoned to remain “jittery” as investors remained cautious due to persisting worries about inflation and the tighter policy stance of global central banks.
“We advise investors to stay alert for bargain hunting opportunities,” he told Bernama.
UOB Kay Hian Wealth Advisors Sdn Bhd head of wealth research and advisor Mohd Sedek Jantan said the short trading week last week started positively following a positive performance on Wall Street, coupled with an unexpected moderation in Chinese inflation data to 2.5% in August from 2.7% previously and an easing in European natural gas prices.
He noted that the FBM KLCI started the week slightly higher with energy and banking stocks leading the gainer.
However, the bourse momentum got slower on Tuesday (Sept 13) due to profit-taking, despite the positive performance in the US market and investors awaiting the US inflation report for August.
“As the US consumer price index report came in 0.1% higher over last month and 8.3% year-over-year versus expectations of an 8.1%, it has pushed a sizeable sell-off,” he said.
The negative sentiment spike market volatility aided in pushing the FBM KLCI to close lower with the regional market.
As such, he said a slower recovery in FBM KLCI is expected next week, pending the US Federal Reserve’s decision.
“Waiting for any development from Xi Jinping-Putin meet”
Mohd Sedek said investors are also waiting for the development from the recent meeting between Chinese President Xi Jinping and Russia’s Vladimir Putin.
“As the Malaysian market closed for Malaysia Day, any surprise data might less impact. Overall, the market will remain cautious for next week,” he said.
Bursa Malaysia and its subsidiaries were closed yesterday (Sept 16) in conjunction with Malaysia Day, and will resume its operations on Monday (Sept 19).
On a Thursday-to-Friday basis, the FBM KLCI fell 29.22 points to 1,467.31 from 1,496.53 at the end of the previous week despite rebounds by Wall Street and regional peers after the previous selloff due to rate hike concerns.
For the index board, the FBM Emas Index was down by 153.64 points to 10,474.58, the FBMT 100 Index lost 160.80 points to 10,214.65, the FBM Emas Shariah Index decreased 114.66 points to 10,578.82, the FBM ACE was 24.73 points lower at 4,833.75 and the FBM 70 erased 29.24 points to 12,727.58.
Sector-wise, the Plantation Index lost 135.85 points to 6,858.12, the Industrial Products and Services Index eased 4.13 points to 181.47 and the Financial Services Index shaved 325.70 points to 16,491.48 while the Energy Index was 30.46 points stronger at 737.62.
Weekly turnover fell to 10.52 bil units worth RM7.59 bil from 11.39 bil units worth RM7.86 bil in the previous week.
The main market volume was lower at 6.91 bil shares valued at RM6.22 bil from 7.01 bil shares valued at RM6.29 bil in the previous week.
Warrants volume contracted to 807.75 mil units worth RM121.09 mil from 1.28 bil units worth RM205.47 mil last week.
The ACE Market volume, on the other hand, shrank to 2.8 bil shares valued at RM1.24 bil from 3.07 bil shares valued at RM1.36 bil the week before. – Sept 17, 2022
Main photo credit: Malay Mail
