KUALA LUMPUR, Sept 17 — Bursa Malaysia is expected to trade sideways next week, with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) to move between the 1,460 to 1,480 level amid the uncertain regional performance, an analyst said.

Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said technically, the FBM KLCI should see immediate support at 1,460 while resistance at 1,500.

He said the short-term FBM KLCI market sentiment is reckoned to remain jittery as investors remained cautious due to persisting worries about inflation and the tighter policy stance of global central banks.

"We advise investors to stay alert for bargain hunting opportunities,” he told Bernama.

UOB Kay Hian Wealth Advisors Sdn Bhd head of wealth research and advisor Mohd Sedek Jantan said the short trading week started positively following a positive performance on wall street last week coupled with an unexpected moderation in Chinese inflation data to 2.5 per cent in August from 2.7 per cent previously and an easing in European natural gas prices.

"FBM KLCI started the week slightly higher with energy and banking stocks leading the gainer,” he said.

However, he said the bourse momentum was getting slower on Tuesday due to profit-taking, despite the positive performance in the US market, and investors awaiting the US inflation report for August.

"As the US consumer price index report came in 0.1 per cent higher over last month, and 8.3 per cent year-over-year versus expectations of an 8.1 per cent, it has pushed a sizeable sell-off.

"The negative sentiment spike market volatility and pushed FBM KLCI to close lower with the regional market,” he said.

As such, he said a slower recovery in FBM KLCI is expected next week, pending the US Federal Reserve’s decision.

Mohd Sedek said investors are also waiting for the development from the meeting between Chinese President Xi Jinping and Russia’s Vladimir Putin later today.

"As the Malaysian market closed for Malaysia Day, any surprise data might less impact. Overall, the market will remain cautious for next week,” he said.

Bursa Malaysia and its subsidiaries were closed on Friday, September 16, 2022, in conjunction with Malaysia Day, and will resume its operation on Monday, September 19, 2022.

On a Thursday-to-Friday basis, the FBM KLCI fell 29.22 points to 1,467.31 from 1,496.53 at the end of the previous week despite Wall Street’s and regional peers’ rebounds after the previous selloff due to rate hike concerns.

For the index board, the FBM Emas Index was down by 153.64 points to 10,474.58, the FBMT 100 Index lost 160.80 points to 10,214.65, the FBM Emas Shariah Index decreased 114.66 points to 10,578.82, the FBM ACE was 24.73 points lower at 4,833.75 and the FBM 70 erased 29.24 points to 12,727.58.

Sector-wise, the Plantation Index lost 135.85 points to 6,858.12, the Industrial Products and Services Index eased 4.13 points to 181.47 and the Financial Services Index shaved 325.70 points to 16,491.48 while the Energy Index was 30.46 points stronger at 737.62.

Weekly turnover fell to 10.52 billion units worth RM7.59 billion from 11.39 billion units worth RM7.86 billion in the previous week.

The Main Market volume was lower at 6.91 billion shares valued at RM6.22 billion from 7.01 billion shares valued at RM6.29 billion in the previous week.

Warrants volume contracted to 807.75 million units worth RM121.09 million from 1.28 billion units worth RM205.47 million last week.

The ACE Market volume shrank to 2.8 billion shares valued at RM1.24 billion from 3.07 billion shares valued at RM1.36 billion the week before. — Bernama