KUALA LUMPUR: Bursa Malaysia is likely to extend its downward trend next week as risk appetite for equities remains sour, with market players awaiting some positive developments from the United States-North Korea geopolitical tensions to upturn sentiments.
Affin Hwang Investment Bank Vice President and Head of Retail Research, Datuk Nazri Khan Adam Khan, said cautious sentiments, due to the irrational nuclear threat, coupled with falling commodity prices and a weaker ringgit against the US dollar, would continue to push investors to the sidelines.
Nevertheless, he said the gloomy market condition was expected to be temporary as analysts opined that “it’s just a rhetoric approach and rationality (of launching missiles) will prevail.”
“We have a weak backdrop at this moment.
“Locally, the fundamentals are still strong with the recent strong export growth, one of the best performances, and positive corporate earnings announcements. I think, Bursa will neutralise next week,” he told Bernama.
Nazri Khan said support level for the market bellwether next week would be at 1,760 and 1,750, citing the current situation provided a great buying opportunity for investors to accumulate undervalued stocks.
For the week just-ended, the benchmark FBM KLCI eased 7.57 points to 1,766.96 from 1,774.53 last week .
The trading movement was influenced by the volatility of oil prices, as well as external development, particularly the escalating tensions between the US and North Korea, which spooked investors to flee to safety.
US President Donald Trump has vowed to respond aggressively to any threats from North Korea and Pyongyang is seriously considering missiles strike on Guam in response to Trump’s threat.
On a weekly basis, the FBM Emas Index was 117.43 points lower at 12,502.44, FBMT 100 Index declined 92.27 points to 12,175.92, FBM Emas Syariah Index fell 131.54 points to 12,612.47, FBM 70 dropped 263.2 points to 14,693.55 and the FBM Ace erased 267.63 points to 6,308.78.
On a sectoral basis, the Finance Index gave up 105 points to 16,717, Plantation Index decreased 62.93 points to 7,787.85, and the Industrial Index fell 31.23 points to 3,234.1.
Total turnover surged to 8.45 billion units worth RM9.08 billion, from 7.31 billion units valued at RM9.79 billion last week.
Main Market volume improved to 5.57 billion shares worth RM8.35 billion from 5.10 billion shares valued at RM8.87 billion last Friday.
Warrants volume shrank to 826.86 million units worth RM125.62 million from 1.20 billion units valued at RM173.04 million previously.
The ACE Market turnover fell to 1.99 billion shares worth RM568.7 million from 2.40 billion shares valued at RM733.74 million. –Bernama