KUALA LUMPUR: Bursa Malaysia is expected to remain weak next week as banking-related stocks are especially impacted, with the focus on the overnight policy rate (OPR) to be released by Bank Negara Malaysia (BNM).
Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the FBM KLCI would likely oscillate around the 1,624 and 1,640 levels with support seen at 1,596 points.
“The market is quite fragile as foreign funds have been net sellers for quite some time now.
“Lower crude palm oil prices, weak results from telcos and a possible cut in OPR will see prospects for the FBM KLCI being quite dim for now,” he told Bernama.
He said the BNM will hold its Monetary Policy Committee (MPC) meeting on May 7.
“We expect the central bank to reduce the OPR by 25-basis points in a bid to spur economic activities.
“The Reserve Bank of Australia (RBA) will also announce its decision on policy rates on the same day. The market consensus is for the RBA to cut the cash rate by 25-basis points to 1.25 per cent,” Mohd Afzanizam added.
During the week just-ended, Bursa Malaysia traded mostly lower in the absence of positive catalysts to spark buying interest, while the weaker sentiment was also clouded by insipid global economic growth.
On a Friday-to-Friday basis, the benchmark FBM KLCI settled 1.08 points lower at 1,637.30.
The market was closed on Wednesday in conjunction with Labour Day.
The FBM Emas Index fell 54.05 points to 11,611.76, the FBMT 100 Index eased 45.16 points to 11,431.96 and the FBM Emas Shariah Index slid 106.15 points to 11,779.77.
The FBM Ace Index declined 147.81 points to 4,646.03 and the FBM 70 shrank 209.34 points to 14,521.39.
Sector-wise, the Financial Services Index improved 51.47 points to 16,932.93, the Plantation Index eased 96.60 points to 7,201.87 and the Industrial Products and Services Index fell 2.67 points to 169.34.
Weekly turnover dropped to 10.39 billion units valued at RM7.94 billion against 19.50 billion units valued at RM13.10 billion last Friday.
Main Market volume slipped to 7.51 billion shares worth RM7.36 billion against 15.56 billion shares worth RM12.36 billion.
Warrants turnover eased to 1.45 billion units valued at RM347.61 million from 1.87 billion units valued at RM342.41 million.
The ACE Market volume was lower at 1.41 billion shares valued at RM232.15 million versus 2.06 billion shares valued at RM397.52 million. — Bernama
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