KUALA LUMPUR, Apr 15 – Bursa Malaysia is expected to consolidate further next week given the soft regional backdrop, a dealer said. Affin Hwang Investment Bank Vice-President and Head of Retail Research, Datuk Dr Nazri Khan Adam Khan said the FTSE Bursa Malaysia KLCI (FBMKCLI) declined 1.2% the last two weeks as the market consolidated after an impressive run for the year.
“It is widely perceived as a healthy correction against an impressive run for the year where the FBMKLCI recorded a total gain of 7.1%, year-to-date, despite the imminent interest rate hike in the US and doubts over President Donald Trump’s fiscal reform,” he told Bernama.
However, Nazri said several positive economic headlines, among others, the launching of the National Transformation 2050 (TN50) should cushion any broad market price weakness. The TN50, which would be the major thrust for the National Budget 2018, would lead to several broad speculative play in the local stock market for the rest of the year.
Furthermore, he said the local stock market should be supported by the current strength in crude oil prices, putting crude oil futures on track for their longest streak of gains since August 2016 and the highest level since early March 2017. He added that the strength in crude oil prices came after news reports that Saudi Arabia was lobbying the Organisation of Petroleum Exporting Countries and other producers to extend a production cut beyond the first half of this year.
For the week just-ended, the local stock market closed mostly lower as sentiment was dampened by rising geopolitical risks in Syria and the development in the Korean Peninsular. On a week-to-week basis, the FBM KLCI eased 10.73 points to 1,730.99 from 1,741.72.
The FBM Emas Index fell 105.24 points to 12,308.12, the FBMT 100 Index was down 92.45 points to 11,948.11 and the FBM Emas Syariah Index shed 123.53 points to 12,759.4. The FBM 70 decreased 181.47 points to 14,495.28 and the FBM Ace shrank 192.32 points to 6,001.62.
On a sectoral basis, the Finance Index erased 139.33 points to 15,564.71, the Industrial Index lost 21.28 points to 3,237.16 but the Plantation Index dipped 249.75 points to 7,914.03. Weekly turnover narrowed to 18.92 billion units, worth RM11.54 billion, from 20.73 billion units, valued at RM15.29 billion, recorded last week.
Main Market volume contracted to 12.27 billion shares, valued at RM10.64 billion, from last week’s 14.20 billion shares, valued at RM14.18 billion. Warrants turnover decreased to 812.96 million units, valued at 102.98 million, from 1.09 billion units worth RM143.59 million, transacted last week. The ACE Market went up to 5.78 billion shares, worth RM789.85 million, from 5.39 billion shares, worth RM959.57 million, traded previously. — Bernama