Kuala lumpur: The FTSE Bursa Malaysia KLCI (FBM KLCI) is anticipated to remain in a consolidation phase in the coming week, as investors exercise caution due to increased market volatility and ongoing global trade issues.
According to BERNAMA News Agency, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng highlighted that regional markets, notably in China and Hong Kong, experienced significant declines this week. This was attributed to the ongoing trade tensions between Beijing and Washington, which have adversely affected overall sentiment across Asia.
Thong noted that key economic indicators to watch in the upcoming week include China’s third-quarter gross domestic product (GDP), the United States’ September consumer price index (CPI), and the eurozone’s October purchasing managers’ index (PMI). Despite the cautious market sentiment, Thong mentioned that selective bargain-hunting might emerge, particularly in oversold blue-chip and value stocks.
He emphasized the importance of maintaining the FBM KLCI above the 1,600-point level to preserve its near-term upward trend and sustain investor confidence. The benchmark index is projected to fluctuate within the 1,600-1,620 range next week. On a week-to-week basis, the FBM KLCI decreased by 15.07 points, closing at 1,607.18 compared to the previous week’s 1,622.25.
The index board saw various declines, with the FBM Emas Index falling by 126.40 points to 12,004.91, the FBMT 100 Index dropping 111.86 points to 11,742.02, the FBM ACE Index slipping 19.87 points to 5,278.89, the FBM 70 Index decreasing 169.58 points to 17,007.94, and the FBM Emas Shariah Index declining 141.70 points to 12,057.27.
Sector-wise, the Plantation Index eased by 30.09 points to 7,860.86, the Industrial Products and Services Index decreased by 3.81 points to 171.05, the Energy Index weakened by 10.07 points to 788.93, and the Financial Services Index fell by 191.00 points to 18,192.44.
Weekly turnover slightly decreased to 18.78 billion units worth RM16.18 billion, compared to 18.81 billion units valued at RM14.76 billion the previous week. The Main Market volume increased to 10.80 billion units worth RM14.53 billion from 10.06 billion units valued at RM12.91 billion earlier. Meanwhile, warrants turnover declined to 5.39 billion units valued at RM641.92 million, down from 6.07 billion units worth RM810.65 million in the prior week. The ACE Market volume also slipped to 2.58 billion units valued at RM992.03 million, compared to 2.68 billion units worth RM1.04 billion previously.