KUALA LUMPUR: Bursa Malaysia is expected to trade in cautious mode with an upside bias, with the benchmark index hovering within a range of between 1,500 and 1,520 points this week, a dealer said.
Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said investors are expected to remain cautious amid heightened uncertainties surrounding the political scene as well as the high number of daily Covid-19 positive cases and concern over its impact to the economy.
“Although the daily vaccination doses administered reached a record high of 556,404 doses on Thursday, investors are still concerned with the number of cases which remained high at above 15,000 cases per day,” he said.
He said the number of Covid-19 patients in the Intensive care units also remained worrying at 1,043 patients as at July 29.
“However, we expect to see some bargain-hunting activities as the market is oversold, closing below the 1,500 level on Friday.
“Also as the latest corporate earnings season has started, any positive surprises could push the market higher,” he told Bernama.
On the economic data front, Adam noted there would be a slew of manufacturing Purchasing Managers’ Index (PMI) data for the month of July in the pipeline for countries including Malaysia, China, Taiwan, Vietnam, Thailand and the Philippines which investor would monitor for clues on market direction.
“We opined that the manufacturing PMI for Malaysia could remain below 50 points due to the enhanced movement control order imposed in certain parts of Selangor and Kuala Lumpur during the first half of July which saw certain industries such as rubber gloves not being able to operate,” he added.
Overall, for Bursa Malaysia, the FBM KLCI decreased 28.84 points to end the week at 1,494.60 from 1,523.44 a week earlier. - Bernama