[ad_1]
KUALA LUMPUR: Bursa Malaysia is likely to experience a knee-jerk reaction next week, pushing the FTSE Bursa Malaysia KLCI (FBM KLCI) lower and keeping it below the 1,500 point mark.
The barometer index, according to Bank Islam Malaysia Bhd, is expected to move in the range of 1,400 and 1,500 points, as political uncertainty remains a concern among investors.
“Overall sentiment is expected to be weak with market participants cautiously awaiting the outcome of the meeting between Prime Minister Tan Sri Muhyiddin Yassin and Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah el Friday, “economist Adam Mohamed Rahim told Bernama.
Earlier yesterday, Muhyiddin chaired a special Cabinet meeting in Perdana Putra, Putrajaya, to discuss current affairs and government affairs.
Persistent selling in mid- and small-cap stocks was seen on Friday, prompting declines to defeat gains from 894 to 311, while 352 accountants remained unchanged, 610 untraded and another 21 suspended.
The drop, according to one analyst, was due to uncertainties surrounding economic and political developments in the country with retail investors leaving the market.
Despite this, indexed stocks were backed by institutional investors.
Meanwhile, on the external front, the US presidential election on November 3 is another factor that will influence the markets, as the winner will have their own set of policies that determine how Malaysia will trade with the United States.
For the trading week that just ended, the local stock market moved mainly in the red zone, dominated by growing political unrest and the global resurgence of COVID-19 cases.
The local stock market was also following the movement of its Asian peers during the past week and influenced by the overnight performance of Wall Street, which was boosted by the stimulus package yet to be finalized.
Rakuten Trade, in a note, said that hopes for the stimulus had skyrocketed over the past few weeks and that the latest update is that a deal will be finalized soon.
Meanwhile, CGS-CIMB Futures Sdn Bhd said that when the Klang Valley entered the second week of the conditional motion control order, retail investors jumped into the stock market and this was also due to the low interest rate prevailing, which was expected to decline further. in November.
“The four trading days this week through Thursday saw volume of 35.75 billion, which was already 5.21 percent higher than last week’s volume of 33.98 billion,” he said.
From Friday to Friday, the FBM KLCI closed 9.20 points lower at 1,494.64 compared to 1,503.84 previously.
On the scoreboard, the FBM Emas index fell 110.84 points to 10,827.23, the FBMT 100 index contracted 108.59 points to 10,631.63 and the FBM Emas Shariah index weakened 186.50 points to 12,954.11.
The FBM 70 lost 313.37 points to 14,258.34 and the FBM ACE lost 365.11 points to 10,606.77.
Regarding the sector, the financial services index fell 50.51 points to 12,359.16 and the plantations index dropped 3.51 points to 6,855.00, but the industrial products and services index rose 0.76 points to 144 , 36.
The Technology Index rose 32.37 points to 60.78, while the Health Index gained 68.43 points to 4,021.86.
Weekly turnover expanded to 42.67 billion units worth RM25.89 billion from 33.97 billion units last week worth RM23.47 billion.
The main market volume expanded to 23.18 billion shares valued at RM20.43 billion versus 19.81 billion shares valued at RM17.91 billion previously.
Warrant turnover was over 4.82 billion units worth RM 1.24 billion compared to 4.06 billion units worth RM 988.80 million in the previous week .
ACE’s market volume also grew to 14.66 billion shares valued at RM4.22 billion from 10.08 billion shares valued at RM4.57 billion. – Called
[ad_2]
