KUALA LUMPUR (May 29): Bursa Malaysia’s key index is expected to hover between 1580 and 1600 next week, as sentiment continues to be clouded by the surge in COVID-19 cases in the country.
Vincent Lau, director of equity sales at Rakuten Trade Sdn Bhd, said investor sentiment remained fragile as the rise in cases raised fears of another complete foreclosure among market participants.
“Without the lockdown issues, the barometer index is likely to break through the next resistance level of 1600.
“But given the current situation where new COVID-19 cases have crossed 8,000 cases on Friday, the market barometer is expected to move between 1,580 and 1,600 next week,” he told Bernama.
He predicted that traders might look to buy if weak if stocks pull back significantly next week.
Meanwhile, Lau and Areca Capital Sdn Bhd CEO Danny Wong shared a similar view that recovery-themed sectors such as tech, gloves and healthcare could make a difference. back next week.
Health Director General Tan Sri Dr Noor Hisham Abdullah tweeted on Friday that Malaysia reported a record 8,290 new COVID-19 cases in the past 24 hours, bringing the total number of cases in the country to date at 549514.
Following the surge in new infections, the Prime Minister’s Office issued a statement on Friday that the National Security Council (MKN) Special Session on COVID-19 management decided to implement a full lockdown of social sectors and economic (first phase) nationwide from June 1 to June 14.
According to the statement, during this entire period, not all sectors will be allowed to operate, except for essential sectors of the economy and services which will be listed by MKN.
The government will also implement a second phase lockdown that will allow the reopening of certain economic sectors that do not involve large gatherings and may comply with physical distancing, if the first phase is successful in reducing daily cases of COVID-19. .
“This second phase will be applied for a period of four weeks after the end of the first phase,” he said.
For the week just ended, FTSE Bursa Malaysia KLCI (FBM KLCI) increased 32.27 points to 1594.44 from 1562.17 registered on Friday of the previous week.
In the holiday-shortened trading week, the market hit an intraday high on three consecutive days, as strong corporate earnings for the quarter ended March 31, 2021 eclipsed nervousness over the tightening of the control decision. 3.0 movements announced last Saturday.
However, market gains have been capped by concerns over rising COVID-19 cases after the country reported several new spikes in infections over the past week, with the highest number affecting 8,290 cases. Friday.
The local stock exchange was closed on Wednesday for the celebration of Wesak Day.
On the index chart, the FBM Emas index rose 242.47 points to 11,578.50, the FBMT 100 index jumped 234.38 points to 11,276.60, the FBM Emas Shariah index jumped 239.01 points at 12,847.04, the FBM 70 strengthened 332.99 points to 14.869.65 and the FBM ACE was 219.01 points firmer at 7843.88.
In terms of sectors, the financial services index jumped 399.13 points to 15,167.13, the plantations index gained 8.94 points to 6,908.46 and the industrial products and services index rose. added 5.79 points to 193.09.
The energy index gained 17.68 points to 863.60, the technology index raised 3.47 points to 78.98 and the health care index pocketed 2.69 points to 3,134.39.
The weekly turnover increased to 30.51 billion units worth 18.84 billion RM from 32.44 billion units worth 16.52 billion RM the previous week.
The main market volume narrowed to 16.84 billion shares valued at RM 14.96 billion from 18.69 billion shares valued at RM 15.29 billion last week.
The volume of warrants fell to 944.87 million units worth RM 104.14 million from 1.53 billion units worth RM 152.39 million previously.
ACE market volume grew to 12.71 billion shares valued at RM 3.75 billion, from 12.24 billion shares valued at RM 4.21 billion the previous week.