KUALA LUMPUR: Bursa Malaysia closed lower on Friday as investors were cautious and avoided making major moves ahead of the anticipated 2025 Budget in mid-October.
The FTSE Bursa Malaysia KLCI (FBM KLCI) declined 11.23 points, or 0.67 per cent, to close at 1,660.09 compared to Thursday's close.
The benchmark index opened 2.73 points lower at 1,668.59 and fluctuated between 1,658.49 and 1,668.59 during the trading session.
On the broader market, decliners led gainers by 642 to 448 while 478 counters were unchanged.
Turnover declined to 3.02 billion units worth RM2.68 billion from Thursday's 3.13 billion units worth RM2.84 billion.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng expects the index to turn upward due to some buying, driven by prevailing low valuations, improving economic conditions and strong corporate earnings.
He added that key regional indices continued their uptrend, especially in China and Hong Kong, following China's stimulus plan to shore up the economy and stock market.
"Based on technical analysis, the FBM KLCI has experienced a slight pullback, signaling a potential short-term correction.
"On a positive note, the 20-day exponential moving average (EMA) is slightly above the 50-day EMA, indicating a medium-term uptrend.
"However, the narrowing gap between the two EMAs suggests a potential consolidation phase.
"This current market correction offers a strategic opportunity for investors to accumulate stocks at lower levels, particularly those with a long-term perspective," he told Business Times.
Thong said as the market pulls back, many fundamentally strong stocks are trading at discounted prices, encouraging bargain hunting by value investors.
He noted that the FBM KLCI may trend between 1,650-1,670 next week, with immediate resistance at 1,670 and support at 1,640.