KUALA LUMPUR: Bursa Malaysia gave up earlier gains to slip into negative territory as the key index failed to stay in the in the positive closing marginally lower, amid a mixed performance in regional markets.
Rakuten Trade equity research vice-president Thong Pak Leng said this is due to uncertainty in the global economic outlook, causing investors to be cautious about making substantial moves.
At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.88 of-a-point to 1,441.97 with continued modest gains by Petronas Chemicals helping to curb further losses.
The barometer index opened 1.12 points better at 1,443.97 from Thursday's close of 1,442.85 and moved between 1,441.09 and 1,446.13 today.
The broader market was positive with gainers leading losers 452 to 374 and 492 counters unchanged.
Turnover shrank to 2.99 billion units valued at RM1.99 billion from Thursday's 3.01 billion units valued at RM1.98 billion.
Regionally, key indices closed mixed as investors are wary ahead of a U.S. government jobs report today followed by Consumer Price Index and the Federal Reserve outcome next week.
In Japan, stocks finished sharply lower on speculation that the Bank of Japan may end its negative interest rate policy. The recent economic data showed Japan's economy shrank by 2.9 per cent year-over-year (YoY) in 3QCY23, worse than estimated earlier.
"Simultaneously, the continuous escalation of tensions in the Middle East, showing no signs of easing, has heightened risk sentiment and adversely impacted the equity markets," said Thong. As for the local bourse, the benchmark is near oversold level. "This means that people might continue to buy stocks when the prices drop a bit. "However, the market, due to the weak market sentiment, prefer to stay cautious and expect the FBM KLCI to stay in consolidation next week until more clarity surfaces," said Thong.
Immediate support is currently at 1,435, and a break below this level might indicate further correction in the near term. "Hence, we anticipate the FBMKLCI Index to trend between 1,435-1,455 for next week," he added.-ends-
