Bursa Malaysia should trade cautiously next week in a moody climate | Money

KUALA LUMPUR, Aug. 3 – The global economic slump that led to weaker growth, coupled with a protracted trade dispute between the United States and China, took off from Bursa Malaysia.

While the local stock market continues to lose ground for the third week in a row, badysts expect the benchmark, the FBM KLCI, to trade cautiously next week, between 1,620 and 1,640.

Pong Teng Siew, head of research at Inter-Pacific Securities Sdn Bhd, said it was highly possible that the local stock market would increase its losses next week due to the lack of local catalysts.

"However, given that the market is currently at a low level because of oversold, there could be a technical rebound and a search for bargains between the week, buying mostly on weaknesses in banking stocks," he said. he told Bernama.

Pong said that as the current market situation remains cloudy due to the volatility of the global economy, investors are turning to a more stable investment, such as real estate investment trusts (REITs).

The Federal Reserve Market (FOMC) cut of 25 basis points had a negative impact on the local financial index, dropping 353.08 points during the week to 15,964.87 points on a base from Friday to Friday.

Stephen Innes, managing partner of VM Markets Pte Ltd, said the US interest rate cut had prompted investors to reconsider the Asian emerging markets strategy.

"Combined with escalating tariffs that have upset the market and hit the heart of the region's growing markets, investors would be more cautious before spending their money," he said.

At the same time, the trade dispute between Washington and Beijing rages when US President Donald Trump has imposed additional tariffs on Chinese products, including smart phones, laptops and children's clothing, as of 1 September 2019.

Beijing has promised retaliatory measures if the US continues to stack more tariffs on the rest of its exports.

From Friday to Friday, the FBM KLCI index has cleared 21.20 points, from 1,647.96 to 1,626.76 last week.

Trade during the week was heavily influenced by Wall Street performances, US-China trade dispute negotiations, and the US FOMC meeting on rate decision. d & # 39; interests.

The FBM Emas index fell by 181.63 points to 11,516.79, the FBMT 100's index is depreciated by 174.66 points to 11,345.00 and the FBM index Emas Shariah of 133.97 points to 11,926.52.

The FBM 70's weakened by 331.66 points to 14,356.22 and the FBM Ace index lost 75.43 points to 4,689.34.

On a sectoral basis, the Financial Services Index slipped 353.08 points to 15,964.87, the plantation index plunged 89.46 points to 6,689.17 and the industrial products and services index decreased by 1.57 points to 154.22.

Weekly turnover fell to 10.06 billion units, worth RM 8.25 billion, compared to 13.96 billion units worth RM 9.90 billion last week .

The main market volume declined to settle at 6.40 billion shares for a value of 7.55 billion RM, compared with 9.25 billion shares for a value of 9 billion of RM.

Warrant sales declined to 1.92 billion units worth RM 416.16 million, compared to RMB 486 million for RM 2.36 billion.

The ACE market volume fell to 1.72 billion shares valued at RM 264.95 billion, compared with RM 2.34 billion worth RMB 411.64 billion.

The local stock exchange and its subsidiaries were closed on July 30 at the same time as the installation of Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah as the 16th Yang di-Pertuan Agong of the country. – Bernama