By Harizah Hanim Mohamed
KUALA LUMPUR, Sept 13 (Bernama) -- Bursa Malaysia is expected to move within the 1,580 to 1,620 points range in subdued trading next week due to a holiday-shortened period, with investors’ focus on the upcoming US Federal Open Market Committee (FOMC) meeting.
Bank Muamalat Malaysia Bhd's chief economist, Dr Mohd Afzanizam Abdul Rashid, noted that the key index surpassed the psychological level of 1,600 points this week, on the back of the anticipation of an interest rate cut by the US Federal Reserve (Fed) next week. “The latest US Consumer Price Index, which came in within expectation, is seen to be allowing the Fed to ease its policy rate by 25 basis points,” he told Bernama.
Thus, traders and investors will be focusing on the FOMC decision, which will be out on Sept 18 (Malaysian time), he added.
“More importantly, they will scrutinise the quarterly forecast, whether the Fed will raise the quantum of monetary policy (easing) in the next two years. Typically, monetary easing would be positive for the equity market and therefore, the FBM KLCI is likely to stay above 1,600 points next week,” Mohd Afzanizam said.
Meanwhile, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said participation and volumes are likely to soften next week as investors stay cautious in the absence of fresh local catalysts, keeping the index largely in consolidation mode.
On a weekly basis, the FBM KLCI rose 21.98 points to 1600.13 on Friday from 1,578.15 on last Thursday. The market was closed on Sept 5 due to the Maulidur Rasul public holiday.
Bursa Malaysia will close on Sept 15, which is an additional public holiday in conjunction with the Malaysia Day holiday on Sept 16. It will resume operations on Sept 17.
The FBM Emas Index advanced 147.43 points to 11,862.72, the FBMT 100 Index gained 139.61 points to 11,623.77, and the FBM Emas Shariah Index jumped 214.77 points to 11,890.29. The FBM ACE Index gained 63.54 points to 4,802.27 while the FBM 70 Index bagged 109.86 points to 16,544.57.
By sector, the Plantation Index gained 95.11 points to 7,699.54, the Industrial Products and Services Index added 2.29 points to 165.28, but the Financial Services Index erased 46.02 points to 18,068.42. The Energy Index shaved 0.72 of a point to 742.9.
Weekly turnover surged to 12.52 billion units worth RM11.25 billion from 7.92 billion units worth RM7.89 billion in the previous week.
The weekly Main Market volume increased to 6.96 billion units valued at RM9.98 billion compared with 4.39 billion units valued at RM7.17 billion previously.
Warrant turnover accumulated to 4.03 billion units worth RM660.45 million from 2.44 billion units worth RM359.34 million in the preceding week.
The ACE Market volume rose to 1.52 billion units valued at RM610.19 million, versus 1.07 billion units valued at RM362.01 million previously.
-- BERNAMA
