Range-bound trading likely next week amid foreign selling

KUALA LUMPUR: Bursa Malaysia has made some gains over the last couple of days but will continue to trade at a limited range due to sidelined foreign investors, discouraging set of financial results posted by some heavyweights and windowdressing activities, which typically happen towards year-end.

Inter-Pacific Securities Sdn Bhd research head Pong Teng Siew said while there seemed to have some efforts to keep the index moving on upward trend, the continued selling activities by foreign investors would keep the trend limited to around 1,600 points until the end of next month.

He said since the third week of last month, foreign investors had sold RM3.75 billion worth of equities.

Yesterday, Bursa Malaysia closed 3.05 points higher at 1,627.26 points from 1,624.21 points on Thursday, supported by buying activities in index-linked counters led by trade and services stocks.

Turnover was at 1.278 billion shares valued at RM1.243 billion.

Pong said volume remained dry for FTSE Bursa Malaysia KLCI in line with global markets.

British American Tobacco (M) Bhd and Kuala Lumpur Kepong Bhd (KLK) were the top gainers in the FTSE Bursa Malaysia Composite Index, gaining RM0.72 and RM0.36 to RM44.58 and RM24.10, respectively.

Among the heavyweights, Hong Leong Bank Bhd gained RM0.02 to RM13.24, Astro Malaysia Holdings Bhd rose RM0.02 to RM2.69, Petronas Dagangan Bhd lost RM0.02 to RM23.58 and RHB Bank Bhd advanced RM0.02 to RM4.70.

Pong said among stocks to look out were small caps, export-oriented and plantation counters, including KESM Industries Bhd, KLK, Negri Sembilan Oil Palms Bhd, Innoprise Plantations Bhd and JHM Consolidation Bhd. Farah Adilla