KUALA LUMPUR: Bursa Malaysia is expected to trend higher this week, with a cheaper valuation of the local bourse after profit-taking activities during the final two trading days last week likely to attract more foreign investors into the market.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said sentiment on the domestic front, however, may be cautious in view of increasing market risks and volatility on the global markets.
“Nevertheless, we believe valuations of the FBM KLCI remain cheap and still offer potential upside for investors.
“For this week, we expect the FBM KLCI to stay in consolidation mode and trend between 1,440 and 1,460 points.
“Technically speaking, we spot immediate resistance at 1,465 and support at 1,440,” he told Bernama.
Last week, the FBM KLCI moved in a volatile trading pattern with a fair share of influence from domestic and external factors, including the announcement of the second-quarter gross domestic product as well as worries over the global economic outlook.
On a Friday-to-Friday basis, the FBM KLCI declined 11.07 points to end the week at 1,446.09 versus 1,457.16 a week earlier.
On the index board, the FBM Emas Index was 33.57 points weaker at 10,661.56, the FBMT 100 Index decreased 39.77 points to 10,347.53, the FBM Emas Shariah Index fell 45.20 points to 10,873.51, the FBM ACE Index erased 80.01 points to 5,264.14 while the FBM 70 Index expanded 112.59 points to 14,099.52.
– The Star