The Sun (Malaysia)
Sideways trading likely
SHARES on Bursa Malaysia are expected to experience further sideways consolidation this week within a narrow 1,660-1,680 points trading band following the weakening ringgit and soft recovery in commodities.
Affin Hwang Investment Bank vice-president/head of retail research Datuk Dr Nazri Khan Adam Khan said the local bourse, however, would get little support from the pause in the US Federal Reserve interest rate and the impending European Central Bank/Japanese bond-buying stimulus.
“We also expect positive rotation play after the presentation of Budget 2016 which significantly focuses on construction and plantation sectors,” he added.
Nazri Khan said Budget 2016 is the best market catalyst to cushion weaknesses as it has the right focus in balancing economic growth, improving government efficiency and maintaining fiscal discipline to boost corporate earnings growth.
Last week, the FBM KLCI ended at 1,665.71, down 45.22 points, or 2.64%, from 1,710.93. Turnover fell to 10.24 billion units worth RM10.06 billion. – Bernama