Faiqah Kamaruddin
KUALA LUMPUR: Bursa Malaysia ended lower on Friday as investors engaged in profit-taking amid regional market weakness.
At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 0.60 per cent, or 9.78 points, to 1,619.40, down from the previous day's close of 1,629.18.
The benchmark index opened 4.22 points lower at 1,624.96 and fluctuated between 1,614.83 and 1,624.96 during the trading session.
The broader market was negative, with 840 decliners outnumbering 449 gainers, while 448 counters remained unchanged.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng said the outlook for Malaysian equities remains steady despite today's lacklustre performance as cheap valuations accompanied by strong fundamentals of the local economy will drive the market going forward.
"The benchmark index has extended its rally, surpassing the 1,620 mark for the first time in three years on Monday.
"Although we expect a temporary pause in bullish activity following this strong surge, the index remains above all exponential moving averages (EMAs).
"The upward trend of the 20-day and 50-day EMAs suggests that the KLCI will consolidate with a positive bias," he added.
Thong anticipates the FBM KLCI to fluctuate within the 1,610–1,635 range next week, with any retracement likely finding support around the 1,590–1,600 levels.
On the regional front, key indices ended lower following the selloff on Wall Street overnight as positive US economic data, along with hawkish minutes from the Fed's last meeting, have prompted traders to scale back their bets on rate cuts this year.
The shift in expectations regarding US rates has driven yields higher, with the benchmark 10-year yield hitting 4.49 per cent yesterday.