Sideways trade likely

BURSA Malaysia is likely to trade sideways this week as investors adopt a wait-and-see approach on the policy adjustment undertaken by the new government.

Hermana Capital Bhd CEO and CIO Datuk Dr Nazri Khan Adam Khan said policy adjustments such as changes in the government-linked companies (GLCs) heads remained one of the key reasons that put investors on the sidelines.

“The move will involve many senior GLCs heads whom the foreign funds have known very well for years. The (expect) changes hence prompt the foreign funds to stay on the sidelines, to await more clarity on the government’s next steps,” he told Bernama.

Nazri Khan hopes the FBM KLCI would stay above the support level of 1,680 points this week in view of the country’s robust economic and financial fundamentals.

On the appointment of Datuk Nor Shamsiah Mohd Yunus as the new governor of Bank Negara Malaysia, he believes it will give a boost to the local market.

”Prior to this, Datuk Nor Shamsiah served as the deputy governor. With her vast experience in the industry, the appointment will definitely boost the confidence of foreign funds in the market,” he said.

Last week, the FBM KLCI ended 67.63 points easier at 1,694.15.