Bursa Malaysia to see cautious sentiment next week

KUALA LUMPUR, Oct 10 (Bernama): With less than a month before the much-awaited Budget 2021 tabling, the market is expected to be quiet next week as investors, especially retail participants, await future catalysts.

An analyst said the current uncertainties in the local market due to the rising number of Covid-19 cases in the country as well as the latest political play by opposition leader Datuk Seri Anwar Ibrahim, had made investors more cautious.

"After a 30-point move by the FBM KLCI (FTSE Bursa Malaysia KLCI) since last week’s closing due to bargain-hunting on selected stocks that have been placed in oversold position, the market is expected to be in a range-bound mode next week,” she said.

As for the trading range, she said the underlying support remained strong at 1,480 while the immediate resistance was placed at 1,540, which was still a long way for the local bourse to reach the 1,600 benchmark.

On a Friday-to-Friday basis, the FBM KLCI rose 30.05 points to end at 1,530.35 from 1,500.30. In the middle of the week, the index declined sharply on profit-taking before rebounding.

On market movement, she said that technology, energy and healthcare stocks would continue to be the favourites among investors while retail investors would continue to seek for small and mid-cap stocks for short-term play.

For the week, the ACE Market was the biggest gainer as it rose 553.27 points to end at 10,557.15 on Friday after a sharp dip last week.

In the coming week, the market is expected take a cue form the meeting between Anwar and the Yang di-Pertuan Agong Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah.

It was reported that Anwar would present to the ruler documentation "of the strong and convincing majority" of members of parliament backing his claim to the premiership.

On the international front, the local market will also continue to be influenced by the US market’s performance, development on the vaccine front, US stimulus package as well as the US presidential election.

On the scoreboard, the FBM Emas Index added 199.22 points to 11,020.92, the FBMT 100 Index rose 190.61 points to 10,840 and the FBM Emas Shariah Index strengthened 149.10 points to 13,130.73.

The FBM 70, meanwhile, advanced 165.66 points to 14,364.64.

Sector-wise, the Financial Services Index added 284.85 points to 12,664.38, the Plantation Index appreciated 168.41 points to 7,075.22 and the Technology Index was up 2.63 points at 28.41.

The Healthcare Index increased 68.72 points to 3,953.43 and the Industrial Products and Services Index inched up 5.49 points to 141.97.

Weekly turnover grew to 30.51 billion worth RM18.12 billion from 26.38 billion units valued at RM16.44 billion last week.

Main Market volume inched up to 13.87 billion shares worth RM13.99 billion from last week’s 13.32 billion shares worth RM12.44 billion.

Warrants turnover was also higher at 3.12 billion worth RM765.05 million from 2.54 billion units valued at RM681.06 accumulated last week.

The ACE Market volume, meanwhile, narrowed to 9.11 billion shares worth RM3.37 billion from 10.50 billion shares worth RM3.31 billion in the previous week. - Bernama

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