Bargain hunting seen on Bursa Malaysia next week
KUALA LUMPUR: Bursa Malaysia is expected to see bargain hunting next week, with the FTSE Bursa Malaysia KLCI (FBM KLCI) likely to trade within the 1,660-1,690 range, said an analyst.
KUALA LUMPUR: Analysts anticipate bargain hunting on Bursa Malaysia next week, with the FTSE Bursa Malaysia KLCI (FBM KLCI) potentially trading between 1,660 and 1,690, according to Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng. The analyst predicts investors will remain cautious due to high U.S. Treasury yields potentially impacting regional fund flows, while the recent market correction has made certain blue-chip valuations more appealing.
The market's trajectory will also depend on global bond yields and investor risk appetite. The FBM KLCI's relative strength index indicates it is near oversold territory, suggesting potential for bargain hunting in solid companies like banks and defensive stocks if external conditions improve. Thong emphasized that the 1,670 level could act as a near-term resistance cap.
He also noted that focus will be on China's Purchasing Managers' Index and the U.S. employment report, which could affect regional risk appetite and bond yields. The previous week saw bargain hunting briefly boost the index, but gains were limited by high U.S. Treasury yields, high oil prices, geopolitical concerns, and foreign selling.
The FBM KLCI closed slightly lower on Friday due to worries about rising yields and West Asia tensions. On a Friday-to-Friday basis, the KLCI rose 6.06 points to 1,671.62 from 1,665.56 the previous week. Sector-wise, the Energy Index gained 41.21 points to 861.83, the Plantation Index dropped 161.57 points to 9,334.87, the Industrial Products and Services Index fell 1.14 points to 184.1, and the Financial Services Index rose 137.86 points to 19,550.49.
Weekly trading rose to 17.11 billion units worth RM14.07 billion, up from 15.02 billion units worth RM14.18 billion the prior week. Main Market volume increased to 10.41 billion units valued at RM12.31 billion, up from 9.38 billion units valued at RM12.93 billion. Warrants volume expanded to 4.21 billion units worth RM661.61 million, from 3.61 billion units worth RM498.33 million.
ACE Market volume grew to 2.48 billion units valued at RM1.09 billion, compared to 2.02 billion units valued at RM748.59 million the previous week.
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