KUALA LUMPUR: Bursa Malaysia ended the week in red as investors were reluctant to take long positions due to high volatility in global equities.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) closed at 1,612.8, declined 2.30 or 0.14 per cent from Thursday's close of 1,615.18.
The FBM KLCI opened 1.19 points lower at 1,613.99 and moved in a narrow range between 1,610.65 and 1,616.83 throughout the day.
On the broader market, losers led gainers 569 to 455, with 556 counters unchanged, 943 untraded, and 52 others suspended.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng estimated the index to fluctuate within the 1,605 to 1,625 range next week, with immediate support at 1,600, followed by 1,592.
For next week, he said investors should focus on sectors like plantation, energy, and banks due to their appealing valuations.
"Based on technical analysis, the FBM KLCI will remain in consolidation with an upside bias for the time being until fresh catalysts emerge. "Despite this short-term consolidation, the longer-term trend remains upward as the index still holds above the 50-day exponential moving average (EMA)," he said.
He also advised investors to remain vigilant for any signs of reversal, particularly if the benchmark index approaches key support levels or if there are significant changes in volume and momentum indicators.
Commenting on the index performance today, Thong said the FBM KLCI moved in a tight range as investors remained cautious and reluctant to take long positions due to high volatility in global equities.
Concurrently, key regional indices also showed similar patterns for the same reason, although bargain hunting was observed in certain bourses.
According to Thong, major tech stocks continued to fall, albeit at a slower pace, after a few underwhelming earnings reports from the sector.
He said investors remain on edge due to unforeseen events in the US presidential election campaign and the timing of an interest rate cut by the US central bank.
"Despite the current short-term downward pressure on Malaysian equities, the strong fundamentals of the economy, coupled with continuous foreign direct investments (FDI) inflows, improving economic conditions, and appealing valuations, are likely to attract bargain hunters soon," he added.