Sideways trade likely

BURSA Malaysia is expected to trade sideways this week, with the benchmark index moving between 1,770 and 1,780 points due to mixed market sentiment from both local and external factors.

Affin Hwang Investment Bank vice-president and head of retail research Datuk Dr Nazri Khan Adam Khan said the market would remain cautious following the tension in the Korean Peninsula which would continue to take centre stage and weighed on market sentiment.

He said regional bourses are expected to be defensive after the European Central Bank’s meeting hinted it might taper stimulus plan in October.

The market will also keep a cautious eye on Hurricane Irma to weigh its impact on Wall Street sentiment.

On the local front, the ringgit hit a one-year high against the US dollar at 4.1820 on Thursday, inflation has moderated while Malaysia’s trade surplus has surged to RM8.03 billion on stronger exports, Nazri Khan said.

“Based on these factors, shares on Bursa Malaysia are expected to be well supported by good local sentiment, while the external headwinds could spark negative sentiment, prompting the market to move sideways,” he said, adding that was evidence local institutions were “buying on dips” in supporting the market.

For the week just-ended, the FBM KLCI gained 6.74 points to 1,779.9. – Bernama