KUALA LUMPUR, Nov 26 – Bursa Malaysia is likely to trade sideways next week, with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) moving between 1,620 and 1,640 points. Affin Hwang Investment Bank Vice President/Head of Retail Research Datuk Dr Nazri Khan Adam Khan said the market would be pressured by oil prices and heightened speculation of an interest rate hike by the US Federal Reserve (Fed) in December.
However, at the same time, he said they expect the recent multi-billion-ringgit deals signed with China to be the catalyst for the local bourse. The 14 agreements for planned investments signed between Malaysia and China and worth almost RM144 billion, will see both countries working together in property development, steel production, solar cells production, bird’s nest production, a port and technology park projects.
Commenting on foreign outflows in emerging markets, Nazri said the situation is expected to normalise once the Fed decides on the interest rate. He also said that the current situation (foreign outflow) only involves traders who park their money in the local market.
“They will come back eventually and after the Fed decides on the interest rate scenario. Investors involved in the local cash market comprise about 50% institutional investors, foreign holdings (20%) and the balance is retail investors. We hoped for more genuine and long-term investors, in this case, investment from China,” he added.
For the week just-ended, the benchmark FBM KLCI rose 3.46 points to 1,627.26 from 1,623.80 last Friday. On a week-to-week basis, the FBM Emas Index declined 34.89 points to 11,424.32, the FBMT 100 Index fell 26.81 points to 11,143.60 and the FBM Emas Syariah Index was 99.98 points lower at 11,993.24.
The FBM Ace dipped 98.06 points to 4,907.11 and the FBM 70 was down 215.01 points to 13,178.99.On a sectoral basis, the Finance Index rose 79.57 points to 14,196.59, the Industrial Index gained 22.11 points to 3,086.28 and the Plantation Index slid 39.44 points to 7,729.04.
Weekly turnover declined to 7.02 billion units worth RM7.53 billion from the 7.33 billion units worth RM8.76 billion registered last Friday. Main market volume contracted to 4.64 billion units valued at RM7.11 billion from the 5.04 billion units valued at RM8.34 billion.
Warrant turnover remained at 1.29 billion shares valued at RM231.49 million from 1.29 billion shares valued at RM242.51 million. The ACE market advanced to 1.03 billion shares worth RM481.07 million from 985.74 million shares valued at RM159.06 million.