Bursa Malaysia likely to trade range-bound next week 

KUALA LUMPUR – Bursa Malaysia is expected to trade range-bound next week with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) hovering within the region of 1,470-1,490 as market volatility remained significant across the region.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said investors remained wary as aggressive interest rate hikes by global central banks would push the global economy into a recession next year.

“We reckon investor sentiment will remain jittery for the moment due to external factors such as increasing market risks and volatility on global markets amid the high inflation in the US,” he told Bernama.

SPI Asset Management managing partner Stephen Innes said investors are examining the overnight movement with great detail to determine the forward guidance heading into the new year.

“With global economic data undershooting expectations, it is not a stretch to think investors may shift their focus from inflation and the Fed (United States Federal Reserve) to the growing impact that the Fed’s actions are likely to have on the economy,” he added.

On Wednesday, Fed chair Jerome Powell mulled a hawkish tone on more rate hikes ahead to fight inflation after the central bank increased the benchmark US interest rate to 4.5 per cent.

On a Friday-to-Friday basis, the key index rose 1.35 points to 1,478.54 from 1,477.19 a week earlier.

On the index board, the FBM Emas Index eased 0.2 of-a-point to 10,607.21, the FBMT 100 Index rose 3.44 points to 10,312.29, the FBM 70 erased 19.56 points to 12,926.66, the FBM Emas Shariah Index trimmed 39.75 points to 10,748.42 and the FBM ACE shaved off 55.56 points to 5,461.94.

Sector-wise, the Industrial Products and Services Index ticked down 0.33 of-a-point to 181.26, the Plantation Index soared 310.05 points to 7,037.93, the Financial Services Index expanded 68.46 points to 16,563.50 and the Energy Index went up 13.41 points to 791.31.

Weekly turnover declined to 13.59 billion units worth RM9.41 billion from 18.68 billion units worth RM10.65 billion in the previous week.

The Main Market volume went down to 8.33 billion shares valued at RM7.68 billion against 11.73 billion shares valued at RM8.51 billion last week.

Warrants volume narrowed to 1.47 billion units worth RM315.35 million from 1.77 billion units worth RM373.42 million previously.

The ACE Market volume contracted to 3.78 billion shares worth RM1.41 billion versus 5.18 billion shares worth RM1.76 billion a week ago. – Bernama / pic TMR File