Jitters ahead of key central bank meetings
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