KUALA LUMPUR: Bursa Malaysia is expected to stay in consolidation mode next week until fresh catalysts emerge, said an analyst.

Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said, nonetheless, the online broker still holds a positive long-term view on the local market, supported by attractive valuations, robust corporate earnings, and improving economic conditions.

"Based on our technical analysis, the FBM KLCI gapped down on Thursday, marking its ninth consecutive black candle and the benchmark index will undergo further consolidation and establish a base in the short to mid-term," he told Bernama.

However, Thong said a close below the 50-day Exponential Moving Average (EMA) could signal potential deeper weakness ahead.

"Consequently, we anticipate the index to fluctuate within the 1,589 to 1,610 range next week, with immediate support at 1,575, followed by 1,565," he added.

Meanwhile, UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said Bursa Malaysia is expected to trade within the 1,590-1,610 range next week, with trading likely supported by domestic investors.

Wall Street is anticipated to be mixed next week, he said, as investors may look to secure profits, particularly in technology companies.

Additionally, the United States (US) Purchasing Managers' Index (PMI) data for June, slated for release on July 1, is expected to confirm ongoing expansion in the US private sector's business activity for the month.

"However, the advance forecast indicates a slight decline, although it remains above the 50 level.

"Domestically, the scheduled release of leading indicator data next week will influence investor confidence and expectations," said Mohd Sedek.

On a Friday-to-Friday basis, the FBM KLCI eased 16.95 points to 1,590.37 from last week's 1,607.32.

During the shortened trading week, the market ended lower due mainly to profit-taking due to a lack of fresh catalysts.

The market was closed on Monday for the Hari Raya Aidiladha celebration.

On the index board, the FBM Emas Index fell 141.62 points to 12,44.83, the FBM 70 Index dropped 223.70 points to 17,927.11, and the FBMT 100 Index decreased 101.80 points to 11,845.98.

The FBM Emas Shariah Index declined 148.31 points to 12,579.17 and the FBM ACE Index sank 113.43 points to 5,789.05.

Sector-wise, the Financial Services Index dipped 162.60 points to 17,416.53, the Industrial Products and Services Index slipped 2.60 points to 197.79, the Energy Index slid 24.90 points to 963.00, but the Plantation Index increased 19.88 points to 7,028.38.

The Healthcare Index rose 51.13 points to 2,156.19 and the Technology Index trimmed 1.60 points to 77.70.

For the week just ended, turnover dwindled to 22.37 billion units valued at RM17.69 billion against 32.08 billion units worth RM21.97 billion in the preceding week.

The Main Market volume shrank to 12.93 billion shares worth RM15.49 billion from 19.13 billion shares valued at RM18.56 billion a week ago.

Warrants turnover advanced to 5.13 billion units valued at RM702.50 million versus 4.54 billion units worth RM530.34 million last week.

The ACE Market volume tumbled to 4.30 billion shares worth RM1.49 billion compared with 8.37 billion shares valued at RM2.88 billion previously.