Bursa to see range-bound trading
Published on: Monday, April 06, 2020
By: Bernama
Kuala Lumpur: Bursa Malaysia is expected to continue its range-bound trading between 1,320 and 1,350 this week as volatility remain high in the market.Rakuten Trade Sdn Bhd Head of Research Kenny Yee said investor sentiment would still be influenced by the Covid-19 situation, as well as the overnight performances of Wall Street.
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“Broad-based profit-taking and bargain-hunting activities are expected to dominate the local stock exchange next (this) week, resulting in range-bound trading in the market,” he told Bernama.
Meanwhile, AllianceDBS Research opined that Malaysia has not been spared from rising economic headwinds with depressed commodity prices, poor business and consumer confidence, and prolonged disruption in economic activities due to the one-month Movement Control Order (MCO) imposed by the government to contain Covid-19.
“Notwithstanding, the recent RM250 billion stimulus package which involves a direct fiscal injection of RM25 billion, the Malaysian government’s coffer will be hit as long as the outbreak is not contained,” it said in a note last Friday.
Over the past week, Bursa Malaysia also traded on a range-bound mode, mainly influenced by the overnight Wall Street performances, Covid-19 news, crude oil prices, Bank Negara Malaysia’s 2019 Annual Report, as well as FTSE Russell’s decision to keep Malaysian bonds on its World Government Bond Index (WGBI) watch list.
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On a Friday-to-Friday basis, key index FTSE Bursa Malaysia KLCI (FBM KLCI) declined 12.44 points to 1,330.65 from 1,343.09 in the previous week.
On the scoreboard, the FBM Emas Index erased 10.92 points to 9,175.38, the FBMT 100 Index fell 38.58 points to 9,088.65, but the FBM Emas Shariah Index accumulated 53.06 points to 10,061.44.
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The FBM 70 jumped 174.22 points to 10,710.06 and the FBM ACE Index advanced 50.36 points to 3,817.31.
Sector-wise, the Industrial Products and Services Index inched up 0.95 of-a-point to 105.24 and the Plantation Index was 16.01 points firmer at 6,139.64.
Weekly turnover expanded to 21.58 billion units worth RM12.43 billion from 18.09 billion units worth RM12.32 billion in the week before.Stay up-to-date by following Daily Express’s Telegram channel.
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