KUALA LUMPUR: Bursa Malaysia is expected to consolidate within the 1,630-1,670 range next week, offering accumulation opportunities and potentially setting the stage for an upward move as market sentiment improves.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the index needs to surpass the 1,670-resistance level to regain its bullish momentum.
He said that if this level is breached with significant trading volume, the next resistance at 1,700 could come into play.
UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan added that the strength in global equities is expected to keep Bursa Malaysia trading higher next week despite the shortened trading week.
"The recovery of the S&P 500 Index, which is now at 5,596, close to its all-time high of 5,670, has been encouraging. After a nearly 10 per cent decline between July 16 and August 5 due to recession fears prompted by rising US joblessness, the S&P 500 has bounced back," he said.
Mohd Sedek said UOB Kay Hian has maintained a positive outlook on the construction and building materials sectors, with data centre projects expected to begin contributing to the earnings of construction companies.
"Additionally, the stronger ringgit, while potentially limiting gains for export-driven sectors like technology, may benefit domestic sectors such as consumers, financials, and selected utilities," he added.
For the past week, the local bourse experienced volatile trading, influenced by a lack of catalysts and concerns over US developments and uncertainty about the scale of potential US interest rate cuts.
Among the week's highlights, YTL Power International had emerged as the biggest loser among the heavyweights on Monday (Sept 9) due to investigations by the Malaysian Anti-Corruption Commission on the 1BestariNet project, while Gamuda Bhd's share price fell following the news of the collapse of an embankment at the Rasau River Water Supply project in Selangor.
Meanwhile, the market welcomed 99 Speed Mart Retail Holdings Bhd as a newly listed company in Bursa Malaysia's Main Market.
On a Friday-to-Friday basis, the FBM KLCI gained 0.97 of-a-point to 1,652.15 from last week's 1,653.12.
On Bursa Malaysia's index board, the FBM Emas Index gained 26.25 points to 12,302.31, the FBMT 100 Index erased 60.95 points to 12,016.30, and the FBM Emas Shariah Index jumped 130.60 points to 12,115.81.
The FBM 70 Index was higher by 187.43 points at 17,281.88, and the FBM ACE Index dropped 0.21 of-a-point to 5,084.24.
Sector-wise, the Financial Services Index slid 51.37 points to 19,551.10, the Plantation Index slashed 62.67 points to 7,180.73, and the Industrial Products and Services Index eased by 0.15 of-a-point to 175.15. The Energy Index declined by 12.38 points to 862.81.
For the week just ended, turnover rose to 38.74 billion units valued at RM16.65 billion from 14.90 billion units valued at RM15.33 billion in the preceding week.
The Main Market's volume edged up to 8.78 billion shares worth RM15.57 billion from last week's 8.66 billion shares worth RM14.01 billion.
Warrant turnover improved to 4.10 billion units valued at RM1.20 billion from 3.60 billion units valued at RM413.23 million last week.
The ACE Market's volume, however, fell to 1.88 billion shares worth RM606.15 million from 2.65 billion shares worth RM906.43 million previously.
-- BERNAMA