KUALA LUMPUR: The FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to consolidate sideways next week at between 1,850-1,870 points on interest rate jitters, the tension in Ukraine, a commodities dip and a risk-off vibe across most safe haven assets.
Affin Investment Bank Vice-President/Head of Retail Research Dr Nazri Khan said the stronger than expected US jobs data had spurred the notion that the US Federal Reserve may pursue earlier monetary tightening and dampened down risk-taking sentiment "As for next week's theme, traders should accumulate trading service and resource stocks which did well last week as commodities recover and the ringgit depreciates," he told Bernama.
Overall, Nazri said the local benchmark index is still in the process of consolidating from the February-April gain of 5.8 per cent, driven by rising defensive sentiment and lofty small cap valuation with sector rotation towards more blue chips, large cap oriented names. "While we do not expect the FBM KLCI to experience a 'bull trap' on current weakness, we believe Bursa Malaysia will benefit from regional dips, taking another stab above 1,870 points and resume its upside momentum. "This is despite being overbought over the last three months," he added.
On a week-to-week basis, the FBM KLCI ended 2.6 points weaker on Friday at 1,866.72 points against the 1,869.08 points recorded the previous week.
The Finance Index fell 48.46 points to 17,023.76 points, the Industrial Index dipped 7.57 points to 3,183.29 points, but the Plantation Index soared 89.73 points to 9,152.02 points. The FBM Emas Index declined 29.73 points to 12,903.73 points, the FBMT100 Index slipped 30.95 points to 12,552.18 points and the FBM 70 lost 93.61 points to 14,003.85 points.
But the FBM Ace rose 30.64 points to 6,589.49 points.
Weekly turnover dropped to 6.59 billion shares worth RM8.28 billion, from last week's 7.32 billion shares worth RM6.96 billion. Main market volume increased to 5.85 billion shares valued at RM7.77 billion from 5.22 billion shares valued at RM7.55 billion, recorded last Friday.
Warrant turnover appreciated to 160.61 million units worth RM24.39 million, from 125.77 million units worth RM15.1 million.
The ACE market volume widened to 1.98 billion shares valued at RM468.45 million from 1.92 billion shares valued at RM378.62 million.
- BERNAMA
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