Consolidation on the cards for now

iFAST Capital's Khaw said domestic factors would buoy Bursa Malaysia over the long run despite some cooling in interest in the near term.

PETALING JAYA: The local equity market could consolidate for a while as investors evaluate the impact the introduction of the service tax and potential subsidy rationalisation will have on consumer spending and inflation.

In what could be a big week for world markets with the US Federal Reserve’s (Fed) chair Jerome Powell set to address Congress in the United States, and China holding its week-long annual session of the National People’s Congress (NPC), analysts believe the FBM KLCI, coming off its year high, is a healthy sign of investors trading the rally in anticipation of policy changes domestically and abroad.