KUALA LUMPUR, April 16 (Bernama) -- Bursa Malaysia is likely to continue its downward trend next week with the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) expected to test the psychological 1,500 support level.
Affin Investment Bank's head of retail research, Dr Nazri Khan, said the local equity market was digesting uncertainties over higher oil prices, rising inflation, the anticipated rise in interest rates and Japan's crisis.
"Local investors were cautious despite positive catalysts such as the Capital Market Master Plan 2. The weak US job data and China inflation at 32-month high and the re-emergence of Europe's debt woes overwhelmed the positive domestic factors," he told Bernama.
Nazri said last week, the favourite commodity sector turned out to be among the weakest while defensive sectors such as consumer and healthcare reversed to among the strongest.
"That confirms our view that the market sentiment has turned more cautious which usually suggests longer period of consolidation," he said.
Meanwhile, TA Securities head of research, Kaladher Govindan, said the outcome of the Sarawak elections this weekend would also have an impact on the investor sentiment next week.
OSK Research, in a note today, said the immediate market action has become harder to predict after the recent wild swings.
"The market would be in good shape as long as it maintains its posture at above the 1,474 level," it said, adding that it would maintain its bullish view towards the near-term market.
Affin Investment Bank's head of retail research, Dr Nazri Khan, said the local equity market was digesting uncertainties over higher oil prices, rising inflation, the anticipated rise in interest rates and Japan's crisis.
"Local investors were cautious despite positive catalysts such as the Capital Market Master Plan 2. The weak US job data and China inflation at 32-month high and the re-emergence of Europe's debt woes overwhelmed the positive domestic factors," he told Bernama.
Nazri said last week, the favourite commodity sector turned out to be among the weakest while defensive sectors such as consumer and healthcare reversed to among the strongest.
"That confirms our view that the market sentiment has turned more cautious which usually suggests longer period of consolidation," he said.
Meanwhile, TA Securities head of research, Kaladher Govindan, said the outcome of the Sarawak elections this weekend would also have an impact on the investor sentiment next week.
OSK Research, in a note today, said the immediate market action has become harder to predict after the recent wild swings.
"The market would be in good shape as long as it maintains its posture at above the 1,474 level," it said, adding that it would maintain its bullish view towards the near-term market.
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