Lacklustre trading mood on Bursa to continue in 3Q18

KOTA KINABALU: The lacklustre trading mood on Bursa Malaysia Bhd (Bursa) has been projected by analysts to continue for the third quarter of 2018 (3Q18).

A seasonal study by the research arm of Kenanga Investment Bank Bhd’s (Kenanga Research) strategist suggested a muted 2Q in the current year 2018 (2QCY18) for Bursa has been proven correct alongside securities average daily trading value (SADV) that inched up by only one per cent quarter on quarter (q-o-q) and four per cent year on year (y-o-y) to RM2.7 billion.

“In the forthcoming 3Q18, our strategist expect the lacklustre trading mood to continue as some investors may stay side-lined while waiting for the release of the new Government’s 100-day progress report or its first Budget,” Kenanga Research said in its 2QCY18 results review released earlier this month.

“In fact, 3Q18 started with a soft note; with SADVs hovering at RM2.1 billion as well as daily trading volume of only 2.47 billion shares, from beginning of July 2018 till our date of writing.”

According to Kenanga Research, on the mid-to-long-term outlook; as part of the continuing initiatives to further enhance the vibrancy and liquidity in the equity market, a list of measures including liberalisations and incentives to supercharge the vibrancy of capital market has been introduced to date.

“We are long-term positive on the initiatives as all these would enhance the vibrancy and liquidity of the local market, especially retail participation, which would in turn enhance Bursa’s trading revenue.”