[ad_1]
KUALA LUMPUR (Oct 31): Bursa Malaysia will be in bear mode next week pending the announcement of Budget 2021 on Friday.
One analyst said that technical analysis of the benchmark FBM KLCI index has shown a three black crows pattern, indicating further bearish momentum.
“The Relative Strength Index (RSI) for the FBM KLCI is currently at 14, down from the RSI of 30, indicating an oversold position.
“However, pending local development, momentum could increase or decrease after the budget presentation on Friday,” he said.
Investors would also await the interest rate decision from the Monetary Policy Committee (MPC) on Tuesday (Nov 3), as well as Malaysian unemployment and industrial production data to be released on Nov 9.
He added that in addition to the budget presentation and the MPC meeting, the US presidential elections that will take place on November 3 will also influence market movement, especially in emerging markets.
On the technical benchmark, the FBM KLCI is expected to move volatilely between 1,430 and 1,470 pending the budget announcement.
From Friday to Friday, the local stock market witnessed strong sales in the ACE market, which led the index to fall almost 11% to 9,443.20 due to the uncertainty of the local market.
On Friday, the market saw the biggest drop across the board with the FBM KLCI dropping 28.31 points or 1.89% after a steady decline for the week.
During the week, the market was directly influenced by the local political scene, concerns about the Budget 2021, calls for new elections to be held once Covid-19 is under control, the oil market crash and movements of the global market.
The market was closed on Thursday together with Maulidur Rasul.
The FBM KLCI closed 27.75 points lower this week at 1,466.89 compared to 1,494.64 on Friday of last week.
On the scoreboard, the FBM Emas index fell 213.65 points to 10,613.58, the FBMT 100 index contracted 208.0 points to 10,423.63 and the FBM Emas Shariah index weakened 212.43 points to 12,741.68.
The FBM 70 lost 273.25 points to 13,985.09.
Regarding the sector, the financial services index decreased 349.77 points to 12,009.39 and the plantations index dropped 53.10 points to 6,801.90, while the industrial products and services index fell 3.22 points to 141 , 14.
The Technology Index slipped 1.09 points to 59.69 while the Health Index fell 38.49 points to 3,083.37.
During the holiday shortened week, weekly turnover fell to 21.09 billion units worth RM16.16 billion from 42.67 billion units worth RM25.89 billion last week.
The main market volume dropped to 11.43 billion shares worth RM12.94 billion from 23.18 billion shares valued at RM20.43 billion.
The warrant turnover was less than 2.84 billion units worth RM735.43 million compared to 4.06 billion units worth RM988.80 million in the previous week.
ACE’s market volume also slid to 6.80 billion worth RM2.48 billion from 14.66 billion shares previously valued at RM4.22 billion.
[ad_2]
