KUALA LUMPUR: Bursa Malaysia ended sharply lower on Friday, reflecting the cautious mood in global markets as investors awaited the crucial US jobs data scheduled for later tonight.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined 11.70 points, or 0.7 per cent, to 1,653.12 from Thursday's close of 1,664.82.
The benchmark index started 4.65 points higher at 1,669.47 and fluctuated between 1,671.83 and 1,648.42 during the session.
On the broader market, decliners outpaced gainers, 662 to 316, with 474 counters unchanged.
Turnover fell to 2.35 billion units valued at RM3.06 billion compared with Thursday's 3.28 billion units valued at RM3.41 billion.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng anticipates the benchmark index to remain in consolidation until fresh catalysts emerge.
"While we are wary of global economic progress, the recent sell-off in Malaysian stocks creates potential for bargain-hunting investors.
"From a technical standpoint, the 20-day and 50-day exponential moving averages (EMAs) are both trending upward, with the index staying above them.
"This signals a continued bullish trend in the short and medium term, though the proximity to the 20-day EMA hints at potential consolidation," he told Business Times.
As such, Thong anticipates the FBM KLCI to trend within the range of 1,650-1,670 for next week, with immediate support at 1,650 followed by 1,630 and resistance at 1,670 followed by 1,700.
Meanwhile, he said regional markets also closed lower, dragged down by concerns over a US recession and a slightly negative cue from Wall Street.
He noted that July's job openings and labour turnover report in the US pointed to a softening in hiring, and the Fed's Beige Book revealed that economic activity has been flat or weakening across most regions recently.
"After holding its key interest rate at a 20-year high to curb inflation, the Federal Reserve signalled that rate cuts may soon begin to safeguard the job market and prevent a recession.
"However, investors fear this move may come too late," he said.