Bursa Malaysia is expected to witness cautious trading with an upward bias next week amid global market uncertainties, with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) moving in the 1,380-1,410 range, an analyst said.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the local bourse remained in an oversold position following the recent heavy selldown while investors were looking for forward guidance.
He said the market undertone would provide opportunities for investors to accumulate stocks at attractive levels given their cheaper valuations during the previous week.
“We foresee a cautious sentiment will continue next week despite the strong rebound in global markets, with bargain-hunting expected to begin in the near term.
“Technically speaking, we will see an immediate resistance at 1,400 and support at 1,370 for next week,” he told Bernama.
On a Friday-to-Friday basis, the FBM KLCI declined 23.53 points to 1,382.47 from 1,406.00 a week earlier, mainly due to continuous selling pressure amid the volatility on global markets.
On the index board, the FBM Emas Index dropped 192.47 points to 9,858.32, the FBM 70 dipped 347.17 points to 11,904.70, and the FBMT 100 Index fell 191.08 points to 9,607.46.
The FBM Emas Shariah Index shaved 216.51 points to 9,854.79, and the FBM ACE gave up 56.87 points to 4,652.10.
Sector-wise, the Financial Services Index contracted 198.73 points to 15,873.48, the Industrial Products and Services Index gave up 4.17 points to 169.88, the Plantation Index dropped 45.45 points to 6,421.87, and the Energy Index was down by 28.50 points to 668.69.
During the holiday-shortened trading week, weekly turnover decreased to 8.48 billion units worth RM6.87 billion from 11.10 billion units worth RM7.65 billion in the previous week.
The Main Market volume was lower at 5.38 billion shares valued at RM6.03 billion against 6.56 billion shares valued at RM6.46 billion in the previous week.
Warrant volume improved to 1.33 billion units worth RM195.11 million versus 1.01 billion units worth RM178.26 million previously. The ACE Market volume shrank to 1.77 billion shares valued at RM639.07 million from 3.52 billion shares valued at RM1 billion the week before.