KUALA LUMPUR: Bursa Malaysia continued its downward trend today due to broad-based selling, reflecting weak regional performance.
Investors remained cautious as the US manufacturing sector experienced its fourth consecutive month of contraction in July, with high interest rates continuing to suppress demand for new orders.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) dropped 0.81 per cent, shedding 13.20 points to 1,611.05 from Thursday's close of 1,624.25.
The broader market also remained negative, with losers outnumbering gainers by 1,316 to 155, while 267 counters remained unchanged.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng said geopolitical tensions also affected sentiment after the Israeli military announced an airstrike in Gaza recently.
"All eyes are now on the upcoming non-farm payrolls report later today, as it is anticipated to offer key insights into the US labour market and overall economic conditions, helping to shape investor expectations for the timing and magnitude of Fed cuts later this year.
"Back home, we remain cautious as sentiment has weakened due to the aforementioned reasons," he said.
Thong said the FBM KLCI is expected to stay in consolidation mode next week with an upside bias as the long-term direction of the local market remains positive.
"Technical point of view, The benchmark index continued its retracement, closing below the 20-day exponential moving average (EMA).
"Due to this decline, we expect market volatility to persist, with the FBM KLCI fluctuating around the 20-day EMA.
"Despite this short-term consolidation, the longer-term trend remains upward as the index is still above the 50-day EMA," he adds.
Thong expects the benchmark index to fluctuate within the 1,600-1,630 range next week, with immediate support at 1,600, followed by 1,592.