Narrow-range trading likely to continue

Bursa Malaysia will likely continue to trade within a narrow range this week, hovering between the 1,680 and 1,700 levels, mainly driven by volatility in the external market.

Rakutan Trade Sdn Bhd head of research Kenny Yee said major factors emanating from the US-China 90-day truce to resolve their differences over trade would have an impact on the market.

At the recent G20 summit in Buenos Aires, US President Donald Trump and his Chinese counterpart Xi Jinping reached an agreement to hold off on slapping additional tariffs on each other’s goods after Jan 1, 2019 as talks continued between both countries.

Yee expressed hope that the barometer index on Bursa Malaysia could close the year at the 1,800-level but he doubted it would happen, especially with the downgrading seen on the earnings after the third quarter of 2018.

“We are now expecting the 1,780-level for the FBM KLCI as the only positive thing on the local bourse is the addition of two constituents, namely AMMB and Top Glove, replacing TM and KLCCP.

“These two stocks should provide more stability (instead of TM and KLCCP),” he said, adding that AMMB was one of the stocks worth buying ahead of the year-end.

On a Friday-to-Friday basis, the FBM KLCI settled 0.68 of-a-point better at 1,680.54.

The FBM Emas Index fell 6.80 points to 11,597.54, the FBMT100 Index slipped 0.13 of-a-point to 11,479.92 and the FBM Emas Shariah Index eased 25.21 points to 11,608.23.

The FBM 70 lost 18.92 points to 13,522.99 WEEKLY FBM KLCI and the FBM Ace was 80.04 points lower at 4,684.39. Sector-wise, the Finance Index bucked the trend, rising 65.82 points to 17,435.04, but the Industrial Products and Services Index edged down 1.39 points to 169.04, while the Plantation Index was 18.16 points weaker at 6,835.11.

Comparing Friday-to-Friday, the weekly turnover depreciated to 10.81 billion units valued at RM9.4bil from10.84 billion units worth RM13.13bil.

Main Market volume was at 7.72 billion units worth RM8.58bil versus 7.72 billion units valued at RM12.47bil.

Warrants turnover rose to 1.87 billion units valued at RM462.77mil from1.83 billion units worth RM414.34mil.

The Ace Market volume was lower at 990.56 million shares worth RM211.72mil compared with 1.25 billion shares valued at RM257.08mil. — Bernama The FBM KLCI futures contract is expected to trade on sideways this week, tracking the performance of the underlying cash market.

Rakuten Trade Sdn Bhd Head of Research Kenny Yee said the market bellwether would likely move at the 1,680-1,700-point levels.

He said among external factors that would drive the KLCI futures included the US-China 90-day truce to resolve their differences over trade. KUALA LUMPUR

Gold futures contract on Bursa Malaysia Derivatives is expected to trade in a consolidated mode this week while waiting for new catalysts, a dealer said.

Phillip Futures Sdn Bhd Dealer Kiang Jia Ling said the market would likely analyse the US job data, including the nonfarm payroll released on Friday to determine their next move.

On a Friday-to-Friday basis, new spot KUALA LUMPUR

The ringgit is expected to trade in a positive mood this week following a great week for local bonds, said OANDA Head of Trading Asia Pacific, Stephen Innes.

For the week just ended, the ringgit closed mostly mixed against the US dollar with the market sentiment moved by oil prices, the US-China trade negotiation outcome, profittaking on the ringgit, and investor worries on global economic outlook.

On a Friday-to-Friday basis, the local note strengthened to 4.1640/1680 against the

BONUS / RIGHTS ISSUES

On a Friday-to-Friday basis, December 2018 slipped three points to 1,683, January 2019 stood at 1,682, March 2019 eased four points to 1,675.5, while June 2019 slid 1.5 points to 1,670.5.

Turnover for the week declined to 15,803 lots from 85,467 lots lots last week, while open interest narrowed to 27,450 contracts from 41,333 contracts. The benchmark FBM KLCI ended 0.68 of-a-point better at 1,680.54 compared with 1,679.86. — Bernama

GOLD FUTURES

month December 2018 gained 22 ticks to RM165.60 per gramme, January 2019 edged up 20 ticks to RM165.60 per gramme, February added 20 ticks to RM165.70 per gramme, while March 2019 settled at RM165.80 per gramme.

Weekly turnover rose to 10 lots worth RM164,930 from four lots worth RM66,020 in the previous week, while open interest declined to 27 contracts versus 30 contracts previously. —Bernama

MONEY MARKET

greenback from 4.1820/1870 in the previous week.

The ringgit traded mostly higher against a basket of major currencies. It appreciated against the Singapore dollar to 3.0385/0434 from 3.0499/0546 but vis-a-vis the Japanese yen, it eased to 3.6899/6937 from 3.6843/6903.

However, the local unit improved against the British pound to 5.3116/3184 from 5.3375/3443 and strengthened against the euro to 4.7320/7373 from 4.7545/7619. — Bernama