Bursa Malaysia is expected to extend its bearish trend next week in the absence of positive news while players will continue to take the cue from Wall Street's performance, dealers said.
They said the less attractive job package announced by US President Barack
Obama and unclear monetary stimulus measures unveiled by Federal Reserve Chief
Ben Bernanke depressed market sentiment.
Affin Investment Bank Head of Retail Research Dr Nazri Khan said the FTSE
Bursa Malaysia KLCI was likely to dip further next week amid slow external
growth and continuing concern over the Europe debt crisis.
"These factors were reinforcing fears that the world's biggest economies are
sliding back into a recession," he added.
He also retained a cautious view of the near-term outlook for the ringgit
which slipped 1.2 per cent this week, the biggest weekly loss recorded in a
month.
"On the local front, however, we believe any immediate downside is likely to
be cushioned by Bank Negara's neutral monetary policy which is likely to be in
force until mid-2012," he said.
On Thursday, the central bank decided to maintain the overnight policy
rate at three per cent.
Jupiter Securities Head of Research Pong Teng Siew anticipated the local
bourse to see slight upward bias next week and hover around the 1,500 points
level.
However, he added, eight new Economic Transformation Programme projects,
worth RM1.4 billion, announced yesterday by Prime Minister Datuk Seri Najib Tun
Razak, in the agriculture, education, aerospace, wholesale, retail and
manufacturing sectors, would lift market sentiment.
He also forecast that the banking sector would gradually recover in the
near-term based on the fact that Malaysian banks were recording commendable
second quarter finanial results.
For the week just-ended, the key FBM KLCI declined 4.97 points to 1,469.12
against 1,474.09 recorded last Friday.
The FTSE Bursa Malaysia Emas Index shed 36.01 points to 10,038.43, FTSE
Bursa Malaysia Ace Index gained 51.86 points to 3,854.87 and the FTSE Bursa
Malaysia Mid 70 Index dwindled 78.43 points to 10,892.80.
The Finance Index fell 15.71 points to 13,691.96, Plantation Index
increased 3.55 points to 7,405.84 and the Industrial Index was 21.95 points
lower at 2,708.02.
Weekly volume increased to 3.5 billion shares, valued at RM6.29 billion,
from 1.3 billion shares, valued at RM3.03 billion, recorded last Friday.
Main Market turnover rose to 2.66 billion units, worth RM6.124 billion, from
1.03 billion units, worth RM2.99 billion, registered previously.
Warrants turnover increased to 225.18 million shares, valued at RM20.95
million, from 100.53 million shares, valued at RM7.76 million, transacted last
week.
Volume on the ACE market increased to 634.159 million units, worth RM66.315
million, from 166.42 million units, worth RM24.35 million, recorded last week. -- Bernama