IT’S been a rough year for Bursa Malaysia so far, but things fared better as we approach the second last week of the year.
A host of factors, including a sharp selldown in the United States markets, siege in Sydney and the persistent downtrend in crude oil prices last week, hammered investor sentiment across Asia, and Bursa was equally affected.
Although share prices on Bursa Malaysia finished higher at the end of trading on Friday on continuous buying support in selected blue chips throughout the day, analysts say this is highly unlikely to give the bourse the push it needs.
The benchmark FTSE Bursa Malaysia KLCI closed at 1,715.99, up 16.04 points, after opening 6.52 points higher at 1,706.47.
Analysts are confident that this positive sentiment will continue till the end of the year as investors, especially fund managers grab the opportunity for window-dressing.
“Despite falling crude oil prices, which have affected the local bourse, we still expect investors to rush for window-dressing, as they do every year,” said an analyst.
This is positive news for Bursa Malaysia, which has been the region’s worst performer this year.
In general, Malaysia’s stock market has been particularly vulnerable to the crash in crude oil prices as oil revenue forms a huge part of government earnings.
Concerns over country’s fiscal position affected by oil prices have also been rife.
According to data provided by AllianceDBS Research, foreigners sold RM11 billion worth of local stocks in the third quarter.
Year-to-date net outflow has hit RM17.5 billion.