KUALA LUMPUR: The consolidation mode is expected to persist on Bursa Malaysia next week until more clarity surfaces about the global economic outlook.
Next week, the US Federal Open Market Committee (FOMC) will reconvene for its final meeting on Dec 12-13. The crucial Consumer Price Index data for November will also be released on Dec 13.
Recent US data sets have convinced the market that the Federal Reserve (Fed) will not lift its borrowing benchmark this month.
Rakuten Trade equity research vice-president Thong Pak Leng said, additionally, market sentiment continued to be influenced by the ongoing Middle East tensions and oil price movement as oil prices have declined for the seventh consecutive week amid worries over surplus and weak demand.
Therefore, he believes domestic market sentiment will remain weak for now.
"The benchmark index is near the oversold level, hence, I believe stock accumulation will persist on dips.
"However, weak market sentiment is expected to linger, so I prefer to stay cautious," he told Bernama.
He said the immediate support is currently at 1,435, and a break below this level might indicate further correction in the near term.
"Overall, we anticipate the FTSE Bursa Malaysia KLCI (FBM KLCI) to trend between 1,435 and 1,455 level for next week," he noted.
For the whole week, Bursa Malaysia was in the negative territory with sentiment affected by a slew of not-so-bullish data from the US, China, Japan, and neighbouring countries.
The muddied US interest rate outlook also contributed to the tepid demand for local equities.
On a Friday-to-Friday basis, the FBM KLCI slid 14.41 points to end the week at 1,441.97 versus 1,456.38 a week ago.
On the index board, the FBM Emas Index dipped 94.97 points to 10,630.68, the FBMT 100 Index slid 94.48 points to 10,300.30, and the FBM Emas Shariah Index tumbled 146.66 points to 10,730.92.
The FBM 70 Index slipped 91.08 points to 13,956.97 while the FBM ACE Index declined 26.74 points to 5,106.42.
Sector-wise, the Financial Services Index gave up 45.63 points to 16,333.94, the Energy Index was 19.37 points weaker at 796.23, the Plantation Index dropped 33.42 points to 6,956.99, while the Industrial Products and Services Index shed 2.29 points to 169.70.
Bursa Malaysia ended the week with a weaker turnover of 15.50 billion units worth RM9.66 billion versus 17.66 billion units worth RM13.94 billion in the preceding week.
The Main Market volume dwindled to 9.07 billion shares valued at RM8.30 billion against 10.85 billion shares valued at RM12.40 billion in the previous week.
Warrants turnover, however, improved to 3.15 billion units valued at RM324.92 million from 3.03 billion units valued at RM361.80 million last week.
The ACE Market volume shrank to 3.23 billion shares worth RM1.03 billion compared to 3.76 billion shares worth RM1.17 billion previously.
– BERNAMA
TAGS: Bursa Malaysia, Weekly, FOMC, Fed, Middle East, Oil