KUALA LUMPUR, July 26 (Bernama) -- Bursa Malaysia is expected to be rangebound next week as investors are likely to remain cautious in the earlier part of the week on concern of crude oil prices regaining strength, analysts said.
Phua Kwee Hock, technical analyst at SJ Scurities, said oil prices are likely to rebound up to US$140 per barrel in about two weeks' time, as the market has corrected a large part of it.
"The downside of oil should be limited as market has corrected a large part of it," Phua said, adding that it would lead to a rise in crude palm oil (CPO) related stocks.
"CPO futures for September is hovering around RM3,000. I think it is due for a rebound as well, maybe up to RM3,500," he said.
Phua said the benchmark Kuala Lumpur Composite Index (KLCI) is set to move between 1,120 and 1,154 points next week unless new leads emerged.
Bursa Malaysia Likely To See Volatile Trading Next Week
Bernama, Malaysia -
On Friday, share prices on Bursa Malaysia closed firmer on last-minute buying of select heavyweights, with the benchmark KLCI edging up 0.16 of a point to 1,141.75.
Throughout the week, the market rejoiced over falling crude oil prices. However, this led to a decline in CPO prices which affected the plantation stocks.
The market also saw investors took profit and remained on the sidelines ahead of the central bank's monetary policy committee meeting to look into interest rates as the inflation rate for June peaked at 7.7 percent, doubled May's 3.8 percent and above most expectations.
However, Bank Negara Malaysia announced on Friday that it would not be revising the overnight policy rate, even after inflation rates touched a 27-year high.
"They will probably have to increase interest rates at the next meeting," Phua said.
According to him, Malaysia's economy is in a slowing phase and sectors like construction may be hit by rising prices of raw materials.
On a Friday-to-Friday basis, the KLCI gained 36.71 points to 1,141.75 from 1,105.4 last Friday.
The Industrial Index rose 86.81 points to 2,431.89 from 2,345.08 and the Finance Index increased 389.27 points to 8,822.25 from 8,432.98 while the Plantation Index lost 133.91 points to 6,222.0 from 6,355.91.
In the Financial Times Stock Exchange-Bursa Malaysia (FTSE-BM) Index series, the FBMEmas went up 220.16 points to 7,566.77 from 7,346.61, the FBM30 advanced 237.31 points to 7,354.1 from 7,116.79, the FBM2BRD gained 120.75 points to 5,387.26 from 5,266.51 and the FBMMdq added 76.93 points to 4,230.42 from 4,153.49.
Turnover rose to 2.228 billion shares valued at RM4.937 billion from 1.631 billion shares valued at RM4.138 billion last week.
The Main Board volume increased to 1.972 billion units worth RM4.858 billion from 1.361 billion units worth RM3.491 billion previously.
Volume on the Second Board was higher at 117.767 million shares worth RM67.97 million from 92.315 million shares worth RM67.278 million last Friday.
On the Mesdaq Market, volume went up to 111.686 million units valued at RM20.957 million from 18.785 million units valued at RM18.419 million previously.
Call warrants rose to 126.393 million shares worth RM28.585 million from 97.195 million shares worth RM2.51 million previously.
Direct business deals increased to 284.158 million units valued at RM677.029 million from 161.691 million units valued at RM175.78 million last Friday.