KUALA LUMPUR: Bursa Malaysia is likely to stage a mild recovery next week with the key index inching towards the 1,772-level on bargain hunting, said an analyst.
The Malaysian Association of Technical Analysts President, Nik Ihsan Raja Abdullah said the local market, which experienced a sell-off in the week just-ended, would turn positive on the back of the expected recovery in oil prices that would soften the impact of capital flight.
“The oil market is recovering quite well. In the last two weeks, it traded around US$55 per barrel and now trading at US$57/US$58 per barrel…that should be a signal,” he told Bernama.
The recent sell-offs on the local bourse were triggered in part to external developments.
In the US, the Federal Reserve (Fed) had maintained interest rates at its Sept 19-20 meeting but signalled it expected one rate hike by end-2017 and would begin to unwind its US$4.5 trillion balance sheet in October while President Donald Trump announced a corporate tax reform.
The US Federal Open Market Committee has another two meetings out of eight annual scheduled meetings towards the end of the year.
Bursa Malaysia was in the negative territory for the last nine consecutive sessions, with the FTSE Bursa Malaysia KLCI (FBM KLCI) falling a cumulative 30.75 points to end the third quarter of 2017, as market sentiment in the Asian region was affected by fresh tensions between North Korea and the US, as well as, the comments by made by Fed Chair, Janet Yellen, on a possible rate increase.
On a weekly basis, the benchmark FTSE Bursa Malaysia KLCI fell 15.46 points to 1,755.58 from 1,771.04 on Thursday last week.
The FBM Emas Index declined 192.39 points to 12,531.29 and the FBMT 100 Index decreased 198.69 points to 12,189.25.
The FBM Emas Syariah Index retreated 130.61 points to 12,797.37, the FBM 70 slid 189.75 points to 15,057.13 and the FBM Ace eased 123.74 points to 6,568.86.
On a sectoral basis, the Finance Index went down 389.11 points to 16,439.87, the Industrial Index fell 41.34 points to 3,201.21, and the Plantation Index declined 98.7 points to 7,871.96.
Total turnover increased to 12.69 billion units valued at RM11.57 billion from 10.40 billion units valued at RM8.32 billion last week.
Main Market volume rose to 9.65 billion shares valued at RM11.05 billion from 7.71 billion shares worth RM7.88 billion.
Warrants volume expanded to 802.06 million units worth RM79.56 million from last Thursday’s 692 million units worth RM74.14 million.
The ACE Market rose to 2.22 billion units valued at RM442.05 million from 1.97 billion shares valued at RM362.26 million. –Bernama
(US$1 = RM4.22)