KUALA LUMPUR (July 16): Bursa Malaysia is likely to see muted trading with an upside bias next week following the recent heavy sell-off amid increasing market risks and volatility in global equity markets, said an analyst.
Inter-Pacific Asset Management Sdn Bhd executive director and fund manager Datuk Dr Nazri Khan Adam Khan said the FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to trend between 1,420 and 1,450 next week as mild bargain-hunting could emerge.
Nazri Khan noted that due to ongoing Covid-19 concerns around the globe and potential interest rate hikes, glove and banking stocks may see some movement in the coming week.
"Mild bargain-hunting in the glove and banking sectors may offset the recent decline in plantation and energy sectors,” he told Bernama.
For the holiday-shortened trading week just ended, the local bourse saw mixed trading amid growing concerns on external factors including volatility in regional and global equity markets.
On Thursday, it was reported that the United States (US) inflation hit a 40-year high of 9.1% in June, exacerbating fears that the Federal Reserve will be aggressive in hiking rates.
At Friday’s close, the FBM KLCI slipped 1.62 points to 1,418.44 from Thursday's close of 1,420.06.
On a weekly basis, the benchmark index was 7.35 points easier to 1,418.44 from 1,425.79 at the end of the previous week.
On the index board, the FBMT 100 Index fell 77.33 points to 9,815.75, the FBM Emas Shariah Index lost 111.57 points to 10,082.35, the FBM Emas Index decreased 88.64 points to 10,047.89, the FBM ACE shaved off 107.98 points to 4,559.83, and the FBM 70 weakened by 201.3 points to 11,995.01.
Sector-wise, the Plantation Index rose 20.87 points to 6,655.73, the Industrial Products and Services Index trimmed 6.1 points to 166.73, and the Energy Index slid 31.8 points to 604.64.
The Financial Services Index declined 69.43 points to 16,007.69, the Healthcare Index rose 25 points to 1,654.44, and the Technology Index shed 1.22 points to 58.73.
Weekly turnover dropped to 5.81 billion units worth RM4.81 billion from 9.45 billion units worth RM6.49 billion last week.
The Main Market volume eased to 5.49 billion shares valued at RM4.2 billion against 5.74 billion shares valued at RM5.61 billion in the previous week.
Warrants volume shrank to 1.39 billion units worth RM256.9 million versus 2.11 billion units worth RM412.91 million last week.
The ACE Market volume fell to 1.29 billion shares valued at RM346.46 million from 1.59 billion shares valued at RM460.36 million the week before.