KUALA LUMPUR: Bursa Malaysia will likely move on a downward trend next week, easing to 1,400 points from the current 1,420 points, as most stocks are struggling to find their next direction.
Inter-pacific Asset Management Bhd chief economist and fund manager Datuk Nazri Khan said investors have raised their expectation that the United States Federal Reserve is going to keep the interest rate higher for longer.
“We expect the FBM KLCI to trend lower since it is below the 1,450 psychological level, and based on the latest transaction, we believe investors are pricing in a period of longer high-interest rates,” he told Bernama.
However, Nazri said the upcoming Budget 2024 would help cushion market weakness and the key index could maintain its position at 1,400 with the expectation that the government spend more on the cost of living, small and medium enterprises and digital technology.
For the week just ended, the FBM KLCI traded mostly lower amidst regional bourses’ positive performance.
On a Friday-to-Friday basis, the FBM KLCI fell 26.06 points to end the week at 1,424.17 versus 1,450.23 a week earlier.
On the index board, the FBM Emas Index slumped by 164.63 points to 10,582.27, the FBMT 100 Index was 163.92 points weaker at 10,244.27, the FBM Emas Shariah Index slid 133.31 points to 10,874.52 and the FBM 70 Index plunged by 123.81 points to 14,193.27.
The FBM ACE Index inched down 33.82 points to 5,175.24
Sector-wise, the Plantation Index slumped 46.87 points to 6,880.35, the Financial Services Index plummeted by 302.46 points to 15,918.17, the Energy Index reduced by 13.18 points to 893.74 and the Industrial Products Services Index edged down 3.34 points to 171.49.
Weekly turnover was weaker at 12.50 billion units worth RM8.37 billion versus 17.26 billion units worth RM10.98 billion in the preceding week.
The Main Market volume slipped to 7.80 billion shares worth RM7.16 billion against 11.78 billion shares worth RM9.71 billion in the previous week.
Warrant turnover was reduced by 1.46 billion units worth RM169.95 million from 1.95 billion units worth RM270.70 million last week.
The ACE Market volume weakened to 3.17 billion shares worth RM1.03 million against 3.39 billion shares worth RM987.96 million previously. - Bernama
