KUALA LUMPUR: The FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to trade in a tight range of between 1,525 and 1,535 next week, with the fiscal stimulus package by the government to be the focus among local traders.
Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said at the global market level, foreign investors would likely remain guarded in view of the economic uncertainties, largely impacted by the Coronavirus (Covid-19) outbreak.
This would also influence Malaysian equities and put more doubts among investors here, he said.
"The concern on rising new cases for Covid-19 outside China appears to take centre stage. This is especially true in the case of South Korea where the number of new cases has shot up to 52 as of Feb 20, which brought its cummulative cases to 156.
"As such, investors are anxious about the potential impact on global growth given that trade and investment are very intertwined following the prevalence of global supply chains, ” he told Bernama.
Mohd Afzanizam said that against such a backdrop, major banks in Asia have been cutting the benchmark rate in order to support economic growth.
Meanwhile, on Feb 27, the government will announce the stimulus package to stimulate Malaysia’s economy and mitigate any adverse repercussions from the outbreak and other external uncertainties.
It is expected to spend up to RM15 billion.
On a Friday-to-Friday basis, the FBM KLCI erased 13.26 points to 1,531.2 from 1,544.46 previously.
On the scoreboard, the FBM Emas Index depreciated 100.47 points to 10,965.61 and the FBMT 100 Index decreased 105.89 points to 10,747.11.
The FBM ACE Index jumped 127.11 points to 5,746.92, the FBM Emas Shariah Index declined 241.77 points to 11,657.26 and the FBM 70 gave up 189.23 points to 13,881.79.
Sector-wise, the Financial Services Index rose 122.96 points to 14,695.92, but the Plantation Index erased 200.46 points to 7,134.65 and the Industrial Products and Services Index slipped 0.92 point to 145.79.
Weekly turnover rose to 13.93 billion units worth RM10.31 billion from 13.40 billion units worth RM11.51 billion recorded in the previous week.
Main Market volume was lower at 8.21 billion shares valued at RM9 billion versus 8.33 billion shares valued at RM10.17 billion.
Warrants turnover narrowed to 1.79 billion units worth RM304.55 million compared with 1.90 billion units worth RM287.80 million.
The ACE Market volume increased to 3.91 billion shares valued at RM999.82 million from 2.56 billion shares worth RM804.78 million in the previous week.