BURSA MALAYSIA LIKELY TO TRADE RANGE-BOUND WITH DOWNSIDE BIAS NEXT WEEK - ANALYST

By Siti Radziah Hamzah

KUALA LUMPUR, Nov 22 (Bernama) -- Bursa Malaysia is expected to trade within a narrow range with a downside bias next week amid heightened volatility in global markets, said an analyst.

SPI Asset Management managing partner Stephen Innes said global markets have turned more volatile as investors reassess stretched valuations and the timing of US Federal Reserve rate cuts, and that swings in US tech and Treasury yields will remain the key external drivers for ASEAN risk assets. 

"Onshore, investors will still be digesting recent trade and inflation data against Bank Negara Malaysia’s steady policy stance. 

"The softer manufacturing PMI (purchasing manufacturing index) also reminds us that external demand has yet to fully recover, which should keep domestic rallies contained and reinforce a rotation-heavy market -- with defensives, yield names and domestic demand plays holding up better than exporters," he told Bernama. 

For the week just ended, the FBM KLCI drifted back towards the 1,610-1,630 range in tandem with the regional pullback.

However, Innes said Malaysia’s underlying macroeconomic backdrop remains fundamentally solid, supported by robust third-quarter economic growth, strong domestic demand and recovery in exports. 

"At the same time, foreign investors have turned small net buyers after weeks of outflows, while Malaysia continues to see healthy demand in its bond market - a sign that overseas appetite for ringgit assets is not evaporating," he added.

On a Friday-to-Friday basis, the FBM KLCI fell 8.10 points to 1,617.57 from last week's 1,625.67. 

For the index board, the FBM Emas Index decreased 58.04 points to 11,996.81, the FBMT 100 Index dipped 52.95 points to 11,770.11, and the FBM Emas Shariah Index declined 66.49 points to 11,992.68.

The FBM ACE Index tumbled 42.17 points to 4,941.59 and the FBM 70 Index dropped 49.84 points to 16,841.03.

By sector, the Plantation Index jumped 96.55 points to 8,236.63, the Energy Index inched up 0.35 of-a-point to 755.96, the Industrial Products and Services Index eased 2.06 points to 164.93, and the Financial Services Index shed 55.34 points to 18,376.0. 

Weekly turnover soared to 21.84 billion units worth RM14.44 billion compared to 14.56 billion units worth RM11.17 billion a week ago.

The Main Market volume rose to 7.41 billion units worth RM11.50 billion versus 5.98 billion units worth RM9.47 billion previously.

Warrants turnover surged to 11.89 billion units valued at RM2.08 billion versus last week's 6.73 billion units valued at RM1.08 billion. 

The ACE Market volume expanded to 2.53 billion units valued at RM858.82 million from 1.83 billion units valued at RM611.92 million a week ago.

-- BERNAMA