KUALA LUMPUR: Bursa Malaysia closed slightly down on Friday in a relatively calm market before the extended weekend, with selling activity mainly seen in banking, gaming, and plantation shares.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined 1.20 points to 1,454.38 from yesterday's close of 1,455.58.
The FBM KLCI commenced the day 1.18 points higher at 1,456.76 and fluctuated within a range of 1,451.99 and 1,457.86 throughout the day.
On the broader market, losers outnumbered gainers 425 to 411, while 484 counters were unchanged.
Turnover declined to 2.97 billion units worth RM1.84 billion from 3.06 billion units worth RM2.09 billion yesterday.
Rakuten Trade equity research vice-president Thong Pak Leng said key regional indices trended mixed on quiet trading sessions ahead of the Christmas and New Year holidays.
"Simultaneously, investors are looking ahead to 2024 as a year of potential rate cuts in the US. "In Hong Kong, stocks finished lower as heavyweights Tencent and NetEase reacted negatively to China releasing draft rules on curbing excessive gaming and spending," he told Business Times.
On the local bourse, Thong believes the recent sell-off provides opportunities for bargain hunters to accumulate stocks at lower levels.
Furthermore, the benchmark index is currently trading at a forward 2024 price-earnings ratio of below 14 times, compared with its five-year average of 17 times, indicating more upside potential. "We anticipate the local market to rebound next week buoyed by continuous support from foreign funds and improving economic conditions.
"We also believe that the benchmark index is still in consolidation mode with a slight positive bias. "As such, we anticipate the benchmark index to trend within the 1,450-1,470 range for next week, with immediate support at 1,450 followed by 1,440," he noted.