KUALA LUMPUR: Bursa Malaysia trended in a tight range and closed easier yesterday as it has entered into a consolidation mode following two days of uptrend, says an analyst.
The FBM KLCI fell 3.52 points, or 0.21%, to 1,665.30 at the close from last Friday’s close of 1,668.82.
It opened 1.09 points firmer at 1,669.91, trading between 1,658.48 and 1,671.62 throughout yesterday’s session.
In the broader market, decliners outpaced gainers 675 to 458, while 500 counters were unchanged, 894 untraded and 30 suspended.
Turnover fell to 3.36 billion units worth RM3.17bil from last Friday’s 4.19 billion units worth RM5.97bil.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng views the consolidation phase positively as it helps build a stronger foundation for future gains.
“By taking a brief pause, the market can establish new support levels, paving the way for further upward movement.
“As such, we anticipate the benchmark index to trend within the range of 1,660-1,680 for the week,” he told Bernama.
Meanwhile, UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said the negative performance of Bursa Malaysia was weighed down by the lack of fresh catalysts, in contrast to the positive performance of other regional equity indices.
“Investors will focus on the preliminary US Manufacturing and Services Purchasing Managers Index data for August, with any positive surprises from the data likely to move the market,” he said.
On regional developments, Mohd Sedek said the composite indices in China and Hong Kong were among yesterday’s gainers, with market participants anticipating further economic stimulus measures from the Chinese government to support growth.
