KUALA LUMPUR: Bursa Malaysia's consolidation phase is set to continue next week with the barometer index trading in a narrow range between 1,600 and 1,620 amid the holiday-shortened trading week.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said due to the Hari Raya Aidiladha holiday on Monday, investors may reduce their trading volume and keep funds on hand to invest once the market provides clear signals.
"Given that the index has dropped below the 20-day Exponential Moving Average (EMA), we anticipate choppy market conditions ahead and expect the consolidation to persist, with the benchmark index fluctuating around the 20-day EMA," he told Bernama.
He also said the 1,630 level had proven to be a hurdle after multiple failed attempts to sustain it due to strong resistance, adding that if the FBM KLCI can remain above the 1,600 mark for a longer duration, the mid-term outlook for the benchmark index will be positive.
"If residual selling pressure persists, we may see the index fall and retest the 1,575-1,589 levels once again," he added.
Apex Securities Bhd head of research Kenneth Leong said the US and Chinese retail and industrial data, the European Union inflation, as well as Japan and the United Kingdom interest rate decisions will be watched closely next week, given the absence of fresh leads on the domestic market.
"Investors are looking forward particularly to China's retail and industrial data next Monday as well as US retail sales data on June 18 to provide clues over the consumption of US consumers, which may indirectly impact inflation data," he said.
On a Friday-to-Friday basis, the FBM KLCI eased 10.54 points to 1,607.32 from last week's 1,617.86.
During the week, the market was mostly in the red amid caution stemming from the US interest rates outlook.
On the index board, the FBM Emas Index gained 29.59 points to 12,386.45, the FBM 70 Index surged 355.93 points to 18,150.81, and the FBMT 100 Index increased 7.32 points to 11,947.78.
The FBM Emas Shariah Index garnered 73.95 points to 12,727.48 and the FBM ACE Index soared 325.16 points to 5,902.48.
Sector-wise, the Financial Services Index dipped 63.14 points to 17,579.13, the Industrial Products and Services Index added 2.74 points to 200.39, the Energy Index climbed 18.67 points to 987.90, and the Plantation Index dwindled 136.83 points to 7,008.50.
The Healthcare Index increased by 16.25 points to 2,207.32 and the Technology Index expanded by 4.17 points to 79.30.
For the week just ended, turnover swelled to 32.08 billion units worth RM21.97 billion against 19.82 billion units worth RM15.89 billion in the preceding week.
The Main Market volume expanded to 19.13 billion shares valued at RM18.56 billion from 11.84 billion shares valued at RM13.87 billion a week ago.
Warrants turnover advanced to 4.54 billion units worth RM530.34 million versus 3.80 billion units worth RM471.06 million last week.
The ACE Market volume doubled to 8.37 billion shares valued at RM2.88 billion compared to 4.17 billion shares valued at RM1.54 billion previously.
– BERNAMA
TAGS: Bursa Malaysia, FBM KLCI, Weekly, Consolidation, EMA, Rakuten, Apex Securities