Bursa Malaysia likely to trend sideways with positive bias

Bursa Malaysia is likely to trend sideways with slightly positive bias within the 1,470-1,490 range next week after a strong set of 2022 gross domestic product (GDP) data was released on Friday, a dealer said. 

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the positive GDP results would boost investor confidence and drive up stock prices as they could lead to stronger corporate earnings and consumer spending.

“On the other hand, investors should stay cautious on external factors such as high inflation in the western bloc and increasing volatility of global equities,” he told Bernama. 

Technically, Thong said immediate support is located at 1,460 while resistance is at 1,500.

Echoing Thong, Malacca Securities Sdn Bhd senior analyst Kenneth Leong said the key focus would be towards the upcoming batch of corporate earnings releases starting from next week till the end of the month. 

Globally, investors are also monitoring several US key economic data such as the inflation rate on Feb 14 as well as both retail sales and industrial production on Feb 15.

“Technically, we continue to see 1,500 as the key resistance on the FBM KLCI, while the support is envisaged at 1,460,” he said. 

Meanwhile, SPI Asset Management managing director Stephen Innes said there is an element of the risk-off permeating the global market due to a more hawkish Federal Reserve outlook. 

“Regardless of next week’s US consumer price index print, unless it drops significantly below expectations, global markets will continue to price in recession risk, so external factors look unfavourable. 

“Many local traders think this year’s China household consumption recovery could be slower than expected, given the scarring effects of property deleveraging and the legacy of three years of COVID-19 controls. Hence, I look for Bursa Malaysia to trade very defensively next week amid more possible ringgit weakness and growing US recession concerns,” he said. 

On a week-to-week basis, the key index eased 15.88 points to 1,474.59 on Friday against 1,490.47 a week earlier.

On the index board, the FBM Emas Index dropped 146.31 points to 10,740.04, the FBMT 100 Index fell 142.16 points to 10,405.73, the FBM Emas Shariah Index went down 165.86 point to 11,046.41, the FBM 70 Index dipped 315.01 points to 13,569.98 and the FBM ACE Index was 99.23 points lower at 5,744.00. 

Sector-wise, the Plantation Index edged down 40.59 points to 6,886.65, the Energy Index eased 9.74 points to 896.37, the Financial Services Index was down by 201.45 points to 16,1113.37 and the Industrial Products and Services Index eased by 1.60 points to 190.15. 

Weekly turnover shaved off to 16.84 billion units worth RM10.22 billion against 18.10 billion units worth RM10.57 billion last week.

The Main Market volume narrowed to 11.26 billion shares valued at RM8.53 billion from 12.44 billion shares valued at RM8.78 billion a week ago.

Warrants volume rose to 1.40 billion units worth RM183.89 million from 1.26 billion units worth RM217.46 million previously.

The ACE Market volume lessened to 4.17 billion shares worth RM1.52 billion from 4.39 billion shares worth RM1.57 billion last week.  — BERNAMA