Bursa to trade in a narrow-range
BURSA Malaysia is expected to trade in the range of between 1,680 and 1,710 levels this week, on expectations of good news from external factors, mainly the outcome of the Group of Twenty (G20) summit.
M&A Securities Sdn Bhd chief dealing officer R. Sundararajah said if US President Donald Trump and China’s President Xi Jinping were able to come to an understanding on a trade agreement, this would surely be a catalyst for markets to react positively.
“Beijing has hinted that it wants to settle the current trade war provided it is fair to both parties. The downward pressure on the crude oil price will also affect the market to a certain extent.”
“Brent crude, which is currently below US$60 per barrel, is also not a good news to Malaysia and also to the oil and gas sector,” he told Bernama.
Overall, Sundararajah said the local stock market would still need to cope with those uncertainties, and hence, the upside would be likely capped at around 1,710 points.
Meanwhile, Inter-Pacific Research Sdn Bhd head of research Pong Teng Siew said Bursa Malaysia is expected to trade sideways this week at about 1,700-point level.
He said the FBM KLCI has not been largely moving and stayed at about 1,700-point range since the third week of October this year. “Generally, the FBM KLCI will trend sideways around this time in the last month of the year,” he said.
For the week just ended, Bursa Malaysia traded mostly higher on external factors, including investors optimism on the G20 WEEKLY FBM KLCI summit and the meeting between Trump and Xi on its sidelines, as well as the announcement of a lower interest rate increase by the US Federal Reserve.
The local stock market was also influenced by the performances on Wall Street and regional markets, as well as the crude oil prices.
On a Friday-to-Friday basis, the benchmark FBM KLCI settled 16.02 points lower at 1,679.86.
Comparing Friday-to-Friday, the weekly turnover expanded to 10.84 billion units worth RM13.13bil from 6.96 billion units valued at RM6.04bil.
Main Market volume increased to 7.72 billion units valued at RM12.47bil versus 4.33 billion units worth RM5.41bil previously. – Bernama KUALA LUMPUR
Gold futures contract on Bursa Malaysia Derivatives is forecast to trade higher this week on trade concerns, a dealer said.
For the week just ended, gold futures prices on Bursa Malaysia were mostly untraded as investors turned cautious ahead of the G20 summit that started last Friday and the much-awaited Trump-Xi meeting.
On a Friday-to-Friday basis, November KUALA LUMPUR
The three-month Kuala Lumpur Interbank Offered Rate (Klibor) futures contract on Bursa Malaysia Derivatives is likely to remain quiet this week on lack of catalyst.
For the week just ended, Klibor futures were untraded for the whole week, with vol-
BONUS / RIGHTS ISSUES 2018 lost 19 ticks to RM164.35 a gramme and December 2018, January 2019 and February 2019 eased 16 ticks each to RM164.50, RM164.60 and RM164.70 a gramme, respectively.
Weekly turnover fell to four lots worth RM66,020 from 11 lots worth RM181,350 in the previous week, while open interest declined to 30 contracts versus 31 contracts previously. – Bernama
KLIBOR FUTURES
ume and open interest remaining nil.
Spot month December 2018, January 2019, February 2019 and March 2019 stood at 96.27, 96.25, 96.24 and 96.22, respectively.
The underlying three-month Klibor was unchanged at previous week’s 3.69%. – Bernama