Bursa Malaysia to trade in cautious mode next week

by BERNAMA/ FILE PIX

Bursa Malaysia is expected to trade in a cautious mode next week, with investors closely watching the market movement following the resurgence of COVID-19 cases globally, a dealer said.

Bank Islam Malaysia Bhd economist Adam Mohamed Rahim said investor sentiment will likely be influenced by the reinstatement of lockdowns in various countries to curb the spread of COVID-19.

“Any further positive news regarding the vaccine will be an impetus for the market to remain around 1,590-1,605 point levels. As of now, resistance is at 1,610 points, while support is at 1,590 points,” he told Bernama.

The local index closed 0.64 per cent higher on Friday to reach above 1,593.8 points, with glove counters such as Top Glove dominating gainers with a 5.0 per cent advance as buying interest emerged from the recent retracement in share price amid positive news regarding the COVID-19 vaccine.

“Other constituents, which had commendable gains, were Petronas Gas which was 2.7 per cent higher as its net profit for the third quarter ended Sept 30 increased 36.9 per cent to RM591.01 million from RM431.59 million a year ago on higher contribution from all segments, particularly regasification and gas processing segments due to lower operating costs and higher unrealised foreign exchange gain,” he said.

On sectoral basis, he said the Bursa Malaysia Construction Index was the biggest gainer, increasing by 1.69 per cent, while the Bursa Malaysia REIT index led laggards with a 0.36 point drop.

“The FBM KLCI ended 4.06 points firmer to end the week at 1,593.75 compared with 1,589.69 last Friday.

On the scoreboard, the FBM Emas Index surged 53.89 points to 11,463.88, the FBMT 100 Index soared 42.84 points to 11,246.88, but the FBM Emas Shariah Index slipped 105.26 points to 13,221.77.

The FBM 70 advanced 119.79 points to 14,734.77 and the FBM ACE Index declined 71.22 points to 11,153.53.

Sector-wise, the Financial Services Index jumped 455.31 points to 14,023.32, the Plantation Index bagged 40.28 points to 7,344.48, and the Industrial Products and Services Index added 3.98 points to 160.18.

The Technology Index slipped 0.54 of-a-point to 63.70, while the Healthcare Index decreased 31.51 points to 3,959.64.

Weekly turnover dropped to 65.45 billion units worth RM29.40 billion from 67.71 billion units worth RM29.51 billion last week.

Main Market volume surged to 32.66 billion shares worth RM21.85 billion from 31.07 billion shares worth RM21.53 billion.

Warrants turnover increased to 5.58 billion units worth RM799.64 million from 4.46 billion units worth RM807.03 million in the preceding week.

The ACE Market volume slipped to 28.82 billion shares worth RM6.75 billion from 32.17 billion shares worth RM7.17 billion previously.