KUALA LUMPUR: Bursa Malaysia is expected to trade sideways between the 1,760 and 1,770 levels next week as it enters a consolidation mode. Affin Hwang Investment Bank Vice-President and Head of Retail Research, Datuk Dr Nazri Khan Adam Khan said the local market is expected to move in tandem with its global peers in consolidating, following an announcement by the US Federal Reserve on trimming its huge balance sheet. He said the market is also expected to react to the US central bank’s indication of another interest rate hike this year. “This might put pressure, not only on Bursa Malaysia, but also global peers,” he told Bernama. For the week just-ended, the benchmark FTSE Bursa Malaysia KLCI lost 15.29 points to 1,771.04 from 1,786.33 last week, weighed on by a combination of the US Federal Open Market Committee meeting and long weekend factor.
The market was closed on Friday for the Awal Muharram holiday. On a weekly basis, the FBM Emas Index was 97.96 points lower at 12,625.72 and the FBMT 100 Index shed 111 points to 12,276.94. The FBM Emas Syariah Index retreated 96.16 points to 12,831.82 and the FBM 70 slid 155.13 points to 15,091.75, as the FBM Ace eased 40.26 points to 6,652.34. On a sectoral basis, the Finance Index went down 70.24 points to 16,758.74, the Industrial Index fell 22 points to 3,220.55, and the Plantation Index declined 53.39 points to 7,917.27. Total turnover declined to 10.4 billion valued at RM8.32 billion from 13.13 billion units valued at RM10.77 billion in the previous week. Main Market volume was flat at 7.71 billion shares worth RM7.88 billion from 7.71 billion shares worth RM9.86 billion. Warrants’ volume decreased to 692 million units worth RM74.14 million from 789.15 million units worth RM102.77 million.
The ACE Market turnover also shrank to 1.97 billion shares valued at RM362.26 million from 4.59 billion shares valued at RM876.93 million. Gold futures contracts on Bursa Malaysia Derivatives are expected to trade slightly bearish next week, tracking a similar performance on the benchmark New York Commodity Exchange (COMEX) gold futures market, a dealer said. He said last week, the trading of the precious metal on COMEX declined to its lowest in nearly four weeks, after the Federal Reserve (Fed) signalled it was on track to raise US interest rates again in December. “The upside of Bursa gold movement is definitely limited on the hawkish comments by the Fed and strong ringgit.Thus, we expect the ringgit-denominated gold futures to be slightly bearish next week,” he said. On a Thursday-to-Friday basis, Sept 2017 declined 68 ticks to RM175.80 per gramme, October 2017 dropped 48 ticks to RM175.80, November 2017 eased 58 ticks to RM176.00 and December 2017 was 36 ticks lower at RM176.00. Weekly turnover fell to 12 lots worth RM212,715 from 22 lots worth RM412,780 recorded in the previous week, while open interest narrowed to 600 contracts from 762 contracts. The market was closed on Friday for the Awal Muharram holiday.
