Jit­ters ahead of key cen­tral bank meet­ings

The Sun (Malaysia) - - SPEAK UP -

RIS­ING con­cerns over the US Fed­eral Re­serve Open Mar­ket Com­mit­tee and Bank of Ja­pan (BoJ) meet­ings cou­pled with the run-up to Bud­get 2017 are ex­pected to keep mar­kets jit­tery this week, with Bursa Malaysia likely to see cau­tious trad­ing.

Af­fin Hwang In­vest­ment Bank vice-pres­i­dent and head of retail re­search Datuk Dr Nazri Khan Adam Khan said these three fac­tors are ex­pected to cause un­cer­tainty in the mar­ket.

“How­ever, I ex­pect the Fed­eral Re­serve to keep interest rates un­changed, and the BoJ might not an­nounce any new stim­u­lus,” he said.

Nazri Khan said the lo­cal bourse should hover be­tween 1,650 and 1,660 points in the near term.

As for the 2017 Bud­get, ru­mours and mar­ket talk would in­flu­ence the mar­ket as most eyes are glued on the feed­back from the wish­lists, Nazri said.

Last week, the FBM KLCI ended 33.45 points lower at 1,652.99. The mar­ket barom­e­ter touched a five­week low of 1,661.39 last Wed­nes­day, weighed down by weak sen­ti­ment as most traders were away on hol­i­day.

Turnover for three days of trad­ing to­talled 4.09 bil­lion units worth RM5.65 bil­lion.

The mar­ket was closed last Mon­day and Fri­day for the Hari Raya Aidi­ladha and Malaysia Day hol­i­days re­spec­tively. – Ber­nama

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