KUALA LUMPUR, Dec 1 — Bursa Malaysia is expected to trade in the range of between 1,680 and 1,710 levels next week, on expectations of a good news coming from external factors, mainly the outcome of the Group of Twenty (G20) summit.
M&A Securities Sdn Bhd Chief Dealing Officer R. Sundararajah said if US President Donald Trump and China’s President Xi Jinping were able to come to an understanding on a trade agreement, this would surely be a catalyst for markets to react positively next week.
“Beijing has hinted that it wants to settle the current trade war provided it is fair to both parties. The downward pressure on the crude oil price will also affect the market to certain extent.
“Brent crude, which is currently below US$60 per barrel, is also not a good news to Malaysia and also to the oil and gas sector,” he told Bernama.
Overall, Sundararajah said the local stock market would still need to cope with those uncertainties, and hence, the upside would be likely capped at around 1,710 points.
Meanwhile, Inter-Pacific Research Sdn Bhd Head of Research Pong Teng Siew said Bursa Malaysia is expected to trade sideways next week at about 1,700-point level.
He said the composite index (CI) has not been largely moving and stayed at about 1,700-point range since the third week of October this year.
“Generally, the CI usually will trend sideways around this time in the last month of the year,” he said.
For the week just ended, Bursa Malaysia traded mostly higher on external factors, including investors optimism on the G20 summit and the meeting between Trump and Xi on its sidelines, as well as the announcement of a slower interest rate increase by the US Federal Reserve.
The local stock market was also influenced by the performances on Wall Street and regional markets, as well as the crude oil prices.
On a Friday-to-Friday basis, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) settled 16.02 points lower at 1,679.86.
The FBM Emas Index fell 174.55 points to 11,604.34, the FBMT100 Index decreased 149.56 points to 11,480.05 and the FBM Emas Shariah Index eased 202.38 points to 11,633.44.
The FBM 70 lost 332.04 points to 13,541.91 and the FBM Ace was 175.76 points lower at 4,67.43.
Sector-wise, the Finance Index bucked the trend, rising 54.63 points to 17,369.22, but the Industrial Products and Services Index edged down 2.03 points to 170.43, while the Plantation Index was 328.88 points weaker at 6,853.27.
Comparing Friday-to-Friday, the weekly turnover expanded to 10.84 billion units worth RM13.13 billion from 6.96 billion units valued at RM6.04 billion.
Main Market volume increased to 7.72 billion units valued at RM12.47 billion versus 4.33 billion units worth RM5.41 billion last Friday.
Warrants turnover rose to 1.83 billion units worth RM414.34 million from 1.48 billion units valued at RM371.96 million previously.
The ACE Market volume was higher at 1.25 billion shares valued at RM257.08 million compared with 1.14 billion shares worth RM254.49 million previously. — Bernama
Source: The Malay Mail Online