Bargain Hunting Seen On Bursa Malaysia Next Week
By Fatin Umairah Abdul Hamid
KUALA LUMPUR, Sept 26 (Bernama) -- Bursa Malaysia is expected to see bargain hunting next week, with the FTSE Bursa Malaysia KLCI (FBM KLCI) likely to trade within the 1,660-1,690 range, said an analyst.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said investors are expected to remain wary of the Malaysian market as elevated United States Treasury yields could continue to pressure regional fund flows, although the recent correction has brought selected blue-chip valuations to more attractive levels.
He said the market’s direction would also depend on developments in global bond yields and investor risk appetite.
“With the FBM KLCI’s relative strength index at around 35, near oversold territory, we expect bargain hunting to emerge in fundamentally strong heavyweights, particularly banks and defensive names, should external conditions stabilise.
“Nevertheless, 1,670 remains a key resistance level, which could cap the near-term recovery,” he told Bernama.
Thong said attention would also turn to China’s Purchasing Managers’ Index (PMI) and the US employment report, which could influence regional risk appetite and the direction of bond yields.
For the week ended yesterday, bargain hunting lifted the index early in the week, but gains were capped by elevated US Treasury yields, higher oil prices, geopolitical uncertainties and foreign selling.
The benchmark index ended marginally lower on Friday amid concerns over rising yields and escalating tensions in West Asia.
On a Friday-to-Friday basis, the FBM KLCI increased 6.06 points to 1,671.62 at yesterday’s close, from 1,665.56 a week earlier.
On the index board, the FBM Emas Index rose 44.92 points to 12,456.64, the FBM Top 100 Index gained 33.09 points to 12,243.46, the FBM Emas Shariah Index shed 5.76 points to 12,306.23 and the FBM ACE Index expanded 288.26 points to 5,532.86, while the FBM Mid 70 Index gained 0.89 of a point to 17,844.91.
By sector, the Energy Index advanced 41.21 points to 861.83 and the Plantation Index erased 161.57 points to 9,334.87. The Industrial Products and Services Index slid 1.14 points to 184.1, while the Financial Services Index accumulated 137.86 points to 19,550.49.
Weekly turnover firmed to 17.11 billion units worth RM14.07 billion from 15.02 billion units worth RM14.18 billion in the previous week.
Main Market volume improved to 10.41 billion units valued at RM12.31 billion, from 9.38 billion units valued at RM12.93 billion previously.
Warrants turnover widened to 4.21 billion units worth RM661.61 million, from 3.61 billion units worth RM498.33 million in the previous week.
ACE Market volume garnered to 2.48 billion units valued at RM1.09 billion, compared with 2.02 billion units valued at RM748.59 million in the previous week.
-- BERNAMA