Bursa Malaysia likely to trend lower this week amid cautious market sentiment

KUALA LUMPUR (Bernama): Bursa Malaysia is likely to trend lower from Monday (Sept 25) amid cautious market sentiment as investors are concerned about the bearish economic outlook, an analyst said.

Chief economist and fund manager of Interpacific Asset Management Bhd Datuk Nazri Khan said the high-interest rate environment could also further dent the economic outlook, leading to a more pronounced slowdown in the demand for goods and services in the coming months.

"This could cause a more subdued equity market environment as market players retreat to the sidelines until there is more clarity in its direction,” he told Bernama.

He said investors are worried that interest rates would stay higher for longer to combat persistent inflation as the US Federal Reserve (Fed) stressed its commitment to keeping rates high.

At home, he said Malaysian stocks continued to lose ground as FBM KLCI slipped below the psychological 1,450 level at the close last week.

However, he said Prime Minister Datuk Seri Anwar Ibrahim’s effort to woo global investors would ensure necessary reforms and provide a catalyst for the market next week as mapped out in MADANI Economy.

Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said he expected the market undertone to remain steady thanks to the continuous inflow of foreign funds.

"Hence, we expect the FBM KLCI to trend higher next week within the range of 1,440 to 1,460.

"Technical point of view, we spot the immediate support at 1,445 while resistance at 1,460,” he said.

For the week just ended, the FBM KLCI traded mostly lower in sync with regional bourses’ weaker performance amid negative market sentiment.

On a Friday-to-Friday basis, the FBM KLCI fell 8.80 points to end the week at 1,450.23 versus 1,459.03 a week earlier.

On the index board, the FBM Emas Index slipped 24.27 points to 10,746.90, the FBMT 100 Index was 36.60 points weaker at 10,408.19, the FBM Emas Shariah Index slid 3.52 points to 11,007.83 and the FBM ACE Index inched down 0.44 of a point to 5,209.06.

Meanwhile, the FBM 70 Index improved by 65.25 points to 14,317.08.

Sector-wise, the Plantation Index slumped 109.99 points to 6,927.22 and the Financial Services Index reduced by 109.60 points to 16,220.63 while the Energy Index advanced 13.06 points to 906.92 and the Industrial Products Services Index edged up 0.35 of a point to 174.83.

Weekly turnover was higher at 17.26 billion units worth RM10.98 billion versus 15.17 billion units worth RM12.02 billion in the preceding week.

The Main Market volume widened to 11.78 billion shares worth RM9.71 billion against 10.70 billion shares worth RM10.96 billion in the previous week.

Warrant turnover was firmer at 1.95 billion units worth RM270.70 million from 1.73 billion units worth RM252.61 million last week.

The ACE Market volume strengthened to 3.39 billion shares worth RM987.96 million against 2.72 billion shares worth RM645.46 million previously. - Bernama

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