KUALA LUMPUR (Sept 26): Bursa Malaysia is likely to trade in a cautious mode next week amid lack of positive catalysts, said analysts.
OANDA senior market analyst for Asia-Pacific Jeffrey Halley said Bursa Malaysia was entirely dependent on the direction of Wall Street in the coming week, as well as whether China data continued to surprise on the upside.
Meanwhile, political instability would dampen enthusiasm but will not in itself notably move the stock market, he added.
"That is because no matter which way the political situation evolves, the finances of the government mean that fiscal policy will remain on its present course," he told Bernama.
Halley said Bursa Malaysia had fallen more because of the weakness on Wall Street this week and not because of any announcement made mid-week on the political front while the FTSE Russell's decision would not have a material impact as of now.
Earlier today, FTSE Russell announced that Malaysia remained a constituent of its World Government Bond Index (WGBI) but stayed on its watch list for a potential downgrade in Market Accessibility Levels.
Malaysia currently ranks at Level 2, which is the minimum required for inclusion in the WGBI. The country was placed on the watch list for a downgrade in March 2019.
On a Friday-to-Friday basis, the FBM KLCI ended 2.51 points higher at 1,509.14 from 1,506.63 previously.
On the scoreboard, the FBM Emas Index gained 3.19 points to 10,840.81, the FBMT 100 Index advanced 16.22 points to 10,668.51 and the FBM Emas Shariah Index surged 125.35 points to 12.962.42.
The FBM 70 added 18.26 points to 14,050.29 while the FBM ACE Index lost 1,034.32 points to 10,027.22.
Sector-wise, the Financial Services Index shed 241.73 points to 12,327.62, the Plantation Index fell 96.83 points to 7,055.12 and the Technology Index was down 0.72 of-a-point at 53.99.
The Healthcare Index advanced 159.38 points to 3,772.73 and the Industrial Products and Services Index inched down 1.91 points to 134.79.
Weekly turnover was slightly higher at 33.09 billion units valued at RM20.31 billion from 33.0 billion units valued at RM22.31 billion last week.
Main Market volume shrank to 17.50 billion shares worth RM15.64 billion from 19.05 billion shares worth RM17.29 billion.
Warrants turnover fell to 3.24 billion units valued at RM859.92 million from 3.56 billion units valued at RM1.01 billion.
The ACE Market volume widened to 13.46 billion shares worth RM4.81 billion from 9.93 billion shares worth RM4 billion.