KUALA LUMPUR, Malaysia (July 10): Despite improved vaccination rates, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to trade in a tight range between 1,510 and 1,530, as investors remain cautious amid the Covid-19 pandemic. In the short run, according to Bank Islam Malaysia Bhd economist Adam Mohamed Rahim, there are no major drivers for the market.
“A possible greater rise for the Industrial Production Index (IPI) for May, which is published next Monday, would not likely operate as an encouragement for the market,” he told Bernama.
The equity market was generally negative last week as fears of high infection rates kept emotions low, with the latest number of daily cases reaching a record high of 9,180 cases on July 9.
On Friday, the market rebounded on bargain-hunting activity, with glove counters tagged to the FBM KLCI such as Hartalega and Top Glove gaining 1.6 percent and 2.7 percent, respectively, on the FBM KLCI.
The Bursa Malaysia Health Care Index, which ended the week 2.1 percent higher, was the greatest winner among all sectors as a result of this.
At its fourth Monetary Policy Committee meeting on Thursday, Bank Negara Malaysia kept the Overnight Policy Rate at 1.75 percent.
The FBM KLCI dropped 12.77 points to 1,520.58 at the close of the week, down from 1,533.35 the week before.
The FBM Emas Index was down 90.8 points to 11,070.11, the FBMT 100 Index was down 91.5 points to 10,781.92, and the FBM Emas Shariah Index was down 65.33 points to 12,110.78 on the index board.
The FBM ACE dropped 36.17 points to 7,175.04 points, while the FBM 70 dropped 125.4 points to 14,324.93 points.
The Industrial Products and Services Index up 0.59 point to 187.52, while the Financial Services Index down 171.82 points to 14,955.63 and the Plantation Index fell 125.39 points to 6,290.43.
The Energy Index was down 17.21 points at 784.21, the Health Care Index was down 36.16 points at 2,805.39, and the Technology Index was up 2.08 points at 81.42.
Weekly turnover jumped to 27.38 billion units valued at RM16.38 billion, up from 26.86 billion units valued at RM14.05 billion the week before.
Volume on the Main Market increased to 18.3 billion shares worth RM13.48 billion, up from 17.73 billion shares worth RM11.74 billion last week.
The number of warrants issued increased to 1.15 billion worth RM134.57 million, up from 857.61 million worth RM84.5 million previously.
The Ace Market volume dropped to 6.89 billion shares worth RM2.78 billion, down from 7.36 billion shares worth RM2.22 billion the previous week./n
