Market to consolidate this week

BURSA Malaysia is expected to trade sideways between the 1,760 and 1,770 levels this week as it enters a consolidation mode.

Affin Hwang Investment Bank vice-president and head of retail research, Datuk Nazri Khan Adam Khan said the local market is expected to move in tandem with its global peers in consolidating, following an announcement by the US Federal Reserve on trimming its huge balance sheet.

He said the market is also expected to react to the US central bank’s indication of another interest rate hike this year.

“This might put pressure, not only on Bursa Malaysia, but also global peers,’’ he told Bernama.

For the week just-ended, the benchmark FBM KLCI lost 15.29 points to 1,771.04 from 1,786.33 the previous week, weighed on by a combination of the US Federal Open Market Committee meeting and long weekend factor.

The market was closed last Friday for the Awal Muharram holiday.

On a weekly basis, the FBM Emas Index was 97.96 points lower at 12,625.72 and the FBMT 100 Index shed 111 points to 12,276.94.

The FBM Emas Syariah Index retreated 96.16 points to 12,831.82 and the FBM 70 slid 155.13 points to 15,091.75, as the FBM Ace eased 40.26 points to 6,652.34.

On a sectoral basis, the Finance Index went down 70.24 points to 16,758.74, the KUALA LUMPUR

The three-month Kuala Lumpur Interbank Offered Rate (Klibor) futures contract on Bursa Malaysia Derivatives is likely to remain quiet this week in the absence of market catalysts.

For the week just-ended, the market was untraded with open interest remaining at nil. WEEKLY FBM KLCI Industrial Index fell 22 points to 3,220.55, and the Plantation Index declined 53.39 points to 7,917.27.

Total turnover declined to 10.4 billion valued at RM8.32bil from 13.13 billion units valued at RM10.77bil in the previous week.

Main Market volume was flat at 7.71 billion shares worth RM7.88bil from 7.71 billion shares worth RM9.86bil.

Warrants' volume decreased to 692 million units worth RM74.14mil from 789.15 million units worth RM102.77mil.

The Ace Market turnover also shrank to 1.97 billion shares valued at RM362.26mil from 4.59 billion shares valued at RM876.93mil. – Bernama

KLIBOR FUTURES

On a Thursday-to-Friday basis, October 2017, November 2017, December 2017 and March 2018 stood at 96.53, 96.52, 96.50 and 96.50 respectively.

The underlying three-month Klobor on the cash market remained at 3.43% last Thursday.

The market was closed last Friday for the Awal Muharram holiday. – Bernama

OIL PALM OUTPUT (in metric tonnes)