KUALA LUMPUR: Bursa Malaysia is expected to face continued downward pressure in the coming week as investors remain cautious, focusing on defensive sectors and avoiding riskier investments.
Maybank Investment Bank Bhd chartist Nik Ihsan Raja Abdullah said the FTSE Bursa Malaysia KLCI (FBM KLCI) may struggle to find an upward momentum unless there are unexpected positive developments in global or local economic data.
"Based on the recent global market developments, the benchmark index is expected to face a challenging week ahead. The persistent downward trend observed in the index, coupled with cautious market sentiment, indicates a continuation of market consolidation," he told Bernama.
Moreover, Nik Ihsan said the FBM KLCI's recent performance, characterised by a sixth straight day of decline and cautious trading, reflects ongoing concerns over global interest rate directions and inflationary pressures.
The local market has been devoid of fresh positive catalysts, leading to sustained selling pressure and profit-taking activities.
Meanwhile, the upcoming economic data, including Malaysia's S&P Global Manufacturing PMI, will be closely watched.
"A weak reading could further dampen market sentiment. Moreover, global economic indicators, such as China's Caixin Manufacturing PMI and US ISM Manufacturing PMI, will provide additional context for investor decisions," he added.
During the week, Bursa Malaysia ended lower on cautious trading ahead of the announcements of key economic data in the United States, namely the country's gross domestic product growth and inflation print on Thursday and Friday, respectively. Local investors also took profit ahead of the long weekend.
On a Friday-to-Friday basis, the FBM KLCI fell 22.72 points to 1,596.68 from last week's 1,619.40.
On the index board, the FBM Emas Index slumped 192.31 points to 12,161.52, the FBM 70 Index tumbled 310.41 points to 17,481.54 and the FBMT 100 Index plummeted 178.59 points to 11,769.66.
The FBM Emas Shariah Index fell 238.39 points to 12,392.36 and the FBM ACE Index dropped 154.58 points to 5,389.57.
Sector-wise, the Financial Services Index was 162.77 points lower at 17,526.22, the Industrial Products and Services Index slipped 1.79 points to 194.86, the Energy Index decreased 34.17 points to 967.36, and the Plantation Index shrank 230.98 points to 7,071.40.
For the week just ended, turnover increased to 26.03 billion units worth RM22.25 billion against 24.18 billion units worth RM17.85 billion in the preceding week.
The Main Market volume was marginally higher at 15.21 billion shares valued at RM18.61 billion from 15.20 billion shares valued at RM15.65 billion a week ago.
Warrants turnover climbed to 5.95 billion units worth RM837.01 million versus 4.76 billion units worth RM656.51 million last week.
The ACE Market volume rose to 4.81 billion shares valued at RM1.68 billion compared to 4.19 billion shares valued at RM1.53 billion previously.
-- BERNAMA