Bursa Malaysia may see selective bargain hunting next week
KUALA LUMPUR: Bursa Malaysia could see selective bargain hunting next week following the recent sell-off, particularly in fundamentally sound blue-chip stocks that have been marked down amid the broader risk-off environment, an analyst said.
KUALA LUMPUR: Analysts predict selective bargain hunting may occur on Bursa Malaysia next week as the market recovers from a recent sell-off, particularly for blue-chip stocks that have been undervalued. Thong Pak Leng, vice-president of equity research at Rakuten Trade Sdn Bhd, attributes the sentiment to external factors such as movements in crude oil prices and US Treasury yields.
The FTSE Bursa Malaysia KLCI is expected to consolidate near the current levels, with a potential technical recovery if global risk appetite improves. Kenneth Leong, head of research at Berjaya Research Sdn Bhd, anticipates the benchmark index to remain under pressure due to geopolitical uncertainties and rising global inflation concerns.
Investors will closely monitor the Federal Reserve's interest rate decision for next week, with a potential 25 basis point hike if oil prices stay high and inflation pressures continue. The local bourse has fallen below the 1,700 psychological level, with immediate resistance at 1,714 points and 1,722 points. Weekly trading volume increased to 18.97 billion units worth RM15.53 billion, while warrants turnover expanded to 4.40 billion units valued at RM624.83 million.
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