Bursa malaysia likely to trade lower
KUALA LUMPUR: Bursa Malaysia is expected to trade lower as the market continues to react to the protectionist policy of the US .
Affin Hwang Investment Bank vice- president/ head of Retail Research, Datuk Dr Nazri Khan Adam Khan, said selling pressure caused by US action is expected to continue in the near-term and would affect not just Malaysia, but regional, European and US stockk markets.
“There will be more selling pressure in the near term. The market will experience a slight pullback,” he told Bernama.
He said the support level would be at 1,850, while resistance is set at 1,880.
US President Donald Trump signed a presidential memorandum on Thursday that could impose tariffs of up to US$60 billion on imports from China and restrictions aimed at preventing Chinese- controlled companies and funds from acquiring US firms with sensitive technologies.
NazriKhan, ishowever, optimist that the geopolitical tensions caused by the US action would be temporary and diplomatic negotiations would take place between the US and China.
“Looking back at geopolitical tensions, it is usually temporary. A global trade war is usually just temporary and rhetoric. I’m sure there will be diplomatic negotiations,” he said.
He said the predicted pullback on the equity market would present an opportunity for investors to buy on dip.
According to Nazri Khan, the market fundamentals remained intact with commodity prices continuing to rise, and economic indicators still being positive.
“The global economy is moving up, Malaysia’s gross domestic product was up and international reserves are strong. Commodities are also still strong as per crude oil, gold and crude palm oil. So, I think it won’t be that bad,” he said.
On a Friday-to-Friday basis, the FBM KLCI was 19.16 points better at 1,865.55 from 1,846.39.
The FBM Emas Index rose 27.02 points to 13,060.66 and FBMT100 Index increased 62.45 points to 12,844.52, but the FBM Emas Shariah Index decreased by 21.35 points to 13,198.82.
The FBM 70 fell 154.56 points to 15,538.93 and the FBM Ace slid 243.09 points to 5,681.92.
On a sectoral basis, the Industrial Index was down 30.31 points to 3,240.42, while the Finance Index surged 170.85 points to 18,209.03 and the Plantation Index jumped 92.2 points to 8,048.7.
Weekly turnover fell to 10.62 billion units worth RM10.41 billion from 12.44 billion units worth RM13.19 billion.
Main market volume declined to 6.98 billion shares valued at RM9.8 billion from 8.12 billion shares valued at RM12.49 billion.
Warrants turnover decreased to 1.63 billion units worth RM296.74 million from 1.88 billion units worth RM274.1 million.
The ACE market contracted to 1.97 billion shares valued at RM309.88 million from 2.4 billion shares valued at RM419.23 million. — Bernama