KUALA LUMPUR, June 20 — Bursa Malaysia is likely to tread on a cautious mode next week on the back of external factors including the resurgence of Covid-19 in the United States and China and tensions on the Korean Peninsula, said an analyst.

AxiCorp global chief market strategist Stephen Innes said the key index, FTSE Bursa Malaysia KLCI (FBM KLCI), would likely stay at above 1,500-level following a lot of stimuli that should provide a boost to risk assets next week.

“This is a consolidation (phase) before markets push higher. (There will be) a bit of a mixed session as investors are struggling to see through a possible run of weaker economic data next week.

“Oil prices are moving in a favourable direction and there is a lot of stimuli that should provide a boost to risk assets next week. But, I sense investor fatigue (will) set in after a very busy week in Asia with geopolitical flare-ups (on Korean Peninsula) and Covid-19 headlines filling the air waves,” he told Bernama.

Innes said investors would also monitor economic data such as the US’ jobless claims next week.

Bursa Malaysia experienced volatile trading throughout the week with the FBM KLCI declining by 47.19 points on Monday to end at 1,498.83 due to the resurgence of Covid-19 in the US and China, as well as weak oil prices, before rebounding to positive territory on Tuesday.

The index fell 21.41 points on Thursday to close at 1,504.91 on broad selling due to lower economic growth projection and in line with most regional markets following the spike in Covid-19 cases.

The Asian Development Bank said Malaysia’s gross domestic product growth is forecast to contract 4.0 per cent this year and grow 6.5 per cent in 2021.

The local bourse ended the week 2.35 points higher at 1,507.26 on mild bargain hunting.

On a Friday-to-Friday basis, the index slipped 38.76 points to end at 1,507.26.

On the scoreboard, the FBM Emas Index dipped 268.55 points to 10,600.60, the FBMT 100 Index shed 282.29 points to 10,449.48, while the FBM Emas Shariah Index trimmed 315.11 points to 12,002.08.

The FBM 70 declined 405.63 points to 12,956.52 and the FBM ACE Index expanded 224.19 points to 6,052.86.

Sector-wise, the Industrial Products and Services Index eased 4.39 points to 135.19, the Plantation Index gained 11.51 points to 6,797.55, and the Financial Services Index lost 431.95 points to 12,978.25.

Weekly turnover increased to 36.03 billion units worth RM22.07 billion from 33.89 billion units worth RM21.59 billion in the previous week.

Main Market volume rose to 20.16 billion shares worth RM18.39 billion from 19.83 billion shares worth RM17.82 billion previously.

Warrants turnover improved to 2.87 billion units worth RM2.0 billion from 2.76 billion units worth RM728.97 million the week before.

The ACE Market volume went up to 12.81 billion shares worth RM2.98 billion from 11.30 billion shares worth RM3.04 billion previously. — Bernama