kuala lumpur: Bursa Malaysia is expected to remain below the psychological level of 1,400 points next week as investors’ risk returns continue to be driven by US and Chinese economic performance.
Tong Park Ren, vice president of equity research at Rakuten Trade, told Bernama that despite a modest recovery in the domestic stock market over the weekend due to bargain sales, investors are still optimistic about the two economic giants. He said he was concerned about the growth story and that deals could remain cautious. hunting.
He said the main economic indicator to be closely monitored next week will be the trade balance between China and the United States.
China will also release its Caixin Services Purchasing Managers Index (PMI) for May, while the US will release factory orders for April and the Institute for Supply Management (ISM) services index for May.
“We expect the FBM KLCI to remain in the 1,380-1,395 range next week,” he told Barnama.
One analyst said ministers from the Organization of the Petroleum Exporting Countries and their allies (OPEC+) will meet on June 4, the day before the US debt ceiling expires on June 5, to discuss the next oil production policy step. said it plans to decide
He said the market is predicting a possible cut in production given current oil prices, with Brent crude hovering around $75 a barrel to push prices higher, which could be a threat to producers such as Malaysia. It could turn positive and boost energy stocks, he said.
Domestic and global risk sentiment has been bearish this week after Chinese factory activity slowed further in May, highlighting a shaky recovery in the economy driven by volatility over the U.S. debt ceiling deal. bottom.
The United States and China are Malaysia’s largest trading partners.
Bursa Malaysia mainly fell during the week.
On a Friday to Friday basis, FBM KLCI closed the week at 1,381.26, down 21.72 points from the previous week’s 1,402.98.
On the index board, the FBM Emas index fell 89.30 points to 10,207.17, the FBMT100 index fell 94.18 points to 9,908.45, and the FBM Emas Shariah index fell 78.17 points to 10,590.86.
In contrast, the FBM 70 index rose 124.64 points to 13,604.64 and the FBM ACE index rose 89.36 points to 5,070.26.
By sector, the financial services index fell 210.48 points to 15,093.95, the plantation index fell 130.70 points to 6,624.56, and the industrial goods and services index fell 4.30 points to 159.78.
The energy index rose 2.97 points to 811.28.
Weekly sales surged to 15.2 billion units (equivalent to RM12.9 billion) compared to last Friday’s 12.6 billion units (equivalent to MYR9.06 billion).
Trading volume on the main market expanded to 10.2 billion shares (worth RM11.5 billion) compared with 8.01 billion shares (worth RM7.8 billion) the week before.
Sales of warrants fell to 1.42 billion units (equivalent to 188.45 million ringgit) from 1.6 billion units (equivalent to 222.39 million ringgit) a week ago.
Trading volume in the ACE market increased to 3.57 billion shares (equivalent to RM1.21 billion) from last week’s 2.95 billion shares (equivalent to RM875.29 million). – Bernama