[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 holding 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 Sultan Yang di-Pertuan Agong Abdullah Sultan Ahmad Shah on Friday,” said economist Adam. Mohamed Rahim to Bernama.
Earlier yesterday, Muhyiddin chaired a special Cabinet meeting in Perdana Putra, Putrajaya, to discuss current affairs and government affairs.
Meanwhile, on the external front, the November 3 US presidential election is another factor that will influence the markets, as the winner will have their own set of policies that will determine Malaysia’s trade with the United States.
For the week of operations 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 over the past week and was 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 fluctuated over the past few weeks and the latest update is that a deal will be finalized soon.
Meanwhile, CGS-CIMB Futures Sdn Bhd said that when Klang Valley entered the second week of the conditional motion control order (CMCO), retail investors jumped into the stock market and this was also due to the low rate of prevailing interest, which was expected to decline further in November.
“The four trading days this week through Thursday recorded a volume of 35.75 billion, which was already 5.21% 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.
Weekly turnover expanded to 42.67 billion units worth RM25.89 billion from 33.97 billion units last week worth RM23.47 billion.
Main market volume expanded to 23.18 billion shares valued at RM20.43 billion compared to 19.81 billion shares valued at RM17.91 billion previously.
