Bursa Malaysia to trade in cautious mode

KUALA LUMPUR: Bursa Malaysia is expected to continue trading in a cautious mode as market sentiment will be largely influenced by external factors, especially the ongoing US-China tensions.

A dealer said the outcome from US President Donald Trump’s news conference on China on Friday, would be the major catalysts for global equity markets in the coming week as it would determine the outlook for the global economic recovery.

AxiCorp global chief market strategist Stephen Innes said the fall out or fall ins from Trump’s Hong Kong reactions and whether oil prices will continue to rise would be the market focus.

The latter would be tied closely to the bullish sentiment for risk and stock market reopening themes, he said.

On the local front, he said the market had been making very good progress during the weekjust-ended as tailwinds from the government and Bank Negara Malaysia’s (rate cut) stimulus helped as economies reopen.

“With another rate cut perhaps on the cards, sentiment could receive a further boost if the Coronavirus Disease 2019 (Covid19) case counts remain flat around the world with the reopening of economies.

“Look for the market to carve out a new trading range in the coming week at between 1,450 and 1,475,” he told Bernama.

During the holiday-shortened week, tensions between Washington and Beijing worsened, causing global equities to tumble, and offsetting hopes for global economic recovery over the development of Covid-19 vaccines, coupled with the revival of business activities.

The local market was closed on Monday and Tuesday in lieu of the Hari Raya Aidilfitri celebration.

On a Friday-to-Friday basis, the index rose 37.49 points to end at 1,473.25.

On the scoreboard, the FBM Emas Index rose 286.73 points to 10,463.85, the FBMT 100 Index expanded 287.89 points to 10,313.21 and the FBM Emas Shariah Index soared 404.88 points to 12,025.22.

The FBM 70 surged 500.04 points to 13,195.2 and the FBM ACE Index chalked up 232.02 points to 5,619.81. Sector-wise, the Industrial Products and Services Index gained 5.67 points to 130.06, the Plantation Index was 62.32 points higher at 6,785.17, and the Financial Services Index increased 102.01 points to 12,482.74. — Bernama