KUALA LUMPUR, July 9 — Bursa Malaysia is likely to trade higher next week, partly due to investors scaling back their expectations on the risk of a global slowdown, said an analyst.

Inter-Pacific Asset Management Sdn Bhd executive director and fund manager Datuk Nazri Khan Adam Khan said the benchmark index is expected to reach 1,450 points next week on the back of improving investors’ sentiment amid stronger economic data reported earlier this week.

"Malaysia’s economic data is better than expected. Employment and manufacturing data are stronger than pre-Covid-19, making the recession fears unfounded,” he told Bernama.

On Thursday, the Department of Statistics reported that the number of unemployed persons in May 2022 continued to decline with a reduction of 1.8 per cent to 637,700 persons, from 649,300 persons the previous month.

The labour force situation in May 2022 also remained resilient registering a month-on-month increase in the labour force with 0.2 per cent to a record 16.54 million persons, from 16.5 million persons in April.

For the week just ended, the local bourse was traded mostly lower amid the prevailing cautious sentiment in the market. On Wednesday, Bank Negara Malaysia decided to increase the overnight policy rate by 25 basis points for the second consecutive session, raising the interest rate to 2.25 per cent.

The commodities rout had also weighed on the Energy Index and Plantation Index this week.

Yesterday, the FBM KLCI advanced 7.10 points to finish the day at 1,425.79 from Thursday’s close of 1,418.69. On a weekly basis, the benchmark index was 23.96 points easier from 1,449.74 at the end of the previous week.

On the index board, the FBMT100 Index trimmed 166.63 points to 9,893.08, the FBM Emas Shariah Index lost 287.06 points to 10,193.92, the FBM Emas Index decreased 179.35 points to 10,136.53, the FBM ACE shaved off 116.71 points to 4,667.81 and the FBM 70 weakened by 207.23 points to 12,196.31.

Sector-wise, the Plantation Index gave up 289.86 points to 6,634.86, the Industrial Products and Services Index lost 8.86 points to 172.83, and the Energy Index was down 48.04 points to 636.44.

The Financial Services Index rose 20.31 points to 16,077.12, the Healthcare Index fell 12.55 points to 1,628.44, and the Technology Index eased 1.96 points to 59.95.

Weekly turnover was lower at 9.45 billion units worth RM6.49 billion from 11.09 billion units worth RM7.95 billion last week.

The Main Market volume narrowed to 5.74 billion shares valued at RM5.61 billion from 7.15 billion shares valued at RM6.92 billion in the previous week.

Warrants volume eased to 2.11 billion units worth RM412.91 million against 2.14 billion units worth RM444.94 million.

The ACE Market volume fell to 1.59 billion shares valued at RM460.36 million versus 1.77 billion shares valued at RM589.15 million the week before. — Bernama