Bursa Malaysia could see technical rebound, bargain hunting next week
KUALA LUMPUR, Sept 12 — Bursa Malaysia could see selective bargain hunting next week following the recent sell-off, particularly in fundamentally sound blue-chip stocks that have been marked down amid the broader risk-off environment, an analyst said.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said external developments are likely to remain the key driver of sentiment, with movements in crude oil prices and United States (US) Treasury yields closely watched.
“We expect the FTSE Bursa Malaysia KLCI (FBM KLCI) to consolidate at current levels with scope for a technical recovery should global risk sentiment stabilise.
“We anticipate the benchmark index to trend within the range of 1,680-1,710 for next week,” he told Bernama.
Meanwhile, Berjaya Research Sdn Bhd head of research Kenneth Leong expects the benchmark index to remain under pressure amid persistent geopolitical uncertainties and rising concerns over global inflation and interest rates.
He said investors would closely monitor the Federal Reserve’s interest rate decision next week, with markets increasingly pricing in a 25 basis point rate hike amid elevated oil prices and renewed inflationary pressures.
“A rate hike would mark the first increase since July 2023 and could weigh further on global risk appetite and emerging-market equities.
“Technically, the local bourse has formed a bearish candlestick to dip below the 1,700 psychological level,” he said.
Hence, Leong said the next supports are now located at 1,680 points and 1,676 points, while the immediate resistances are shifted to 1,714 points, followed by 1,722 points.
On a Friday-to-Friday basis, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined 21.36 points to 1,686.74 at yesterday’s close from 1,708.10 a week earlier.
On the index board, the FBM Emas Index fell 115.25 points to 12,510.20, the FBM Top 100 Index lost 123.62 points to 12,305.64, but the FBM Emas Shariah Index added 36.11 points to 12,396.81, the FBM ACE Index inched up 42.76 points to 5,260.23, while the FBM Mid 70 Index tumbled 40.56 points to 17,728.64.
By sector, the Energy Index advanced 8.81 points to 814.43, and the Plantation Index improved 98.10 points to 9,436.02, while the Industrial Products and Services Index rose 1.82 points to 188.78, and the Financial Services Index dipped 539.28 points to 19,622.21.
Weekly turnover increased to 18.97 billion units worth RM15.53 billion from 17.97 billion units worth RM14.14 billion in the prior week.
Main Market volume eased to 11.62 billion units valued at RM13.89 billion against 12.00 billion units valued at RM12.85 billion previously.
Warrants turnover expanded to 4.40 billion units worth RM624.83 million versus 3.83 billion units worth RM542.71 million last week.
ACE Market volume strengthened to 2.93 billion units valued at RM1.00 million compared with 2.13 billion units valued at RM743.53 million in the previous week.
