KUALA LUMPUR: Bursa Malaysia reversed earlier losses to finish the week slightly up today driven by late buying activity, despite the prevailing downbeat performance in regional markets.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose slightly by 0.98 points to reach 1,542.39, up from Thursday's closing of 1,541.41.
Throughout the day, the benchmark index, which initially opened 0.15 of-a-point higher at 1,541.56, traded within a narrow range of 1,537.92 and 1,543.84. On the broader market, losers outnumbered gainers 538 to 544, while 475 counters were unchanged.
Turnover rose to 5.08 billion units worth RM2.69 billion from 4.02 billion units worth RM2.94 billion on Thursday.
Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng said the FBM KLCI moved within a tight range as investors pivoted towards smaller-cap stocks, particularly those within the property, construction, and technology sectors.
He added that the benchmark index has remained within a consolidative range of between 1,532 and 1,557 over the past week.
Despite this consolidation, he said the FBM KLCI has consistently held above the 50-day Exponential Moving Average (EMA) line.
"As such, we maintain the view that the benchmark index is still consolidating with a slight positive bias, with expectations of it hovering around the 20-day EMA. "If selling pressure persists, there might be a retest of the 1,508-1,520 levels.
"As such, we anticipate the FBM KLCI to trend within the range of 1,527–1,560 for next week with immediate resistance at 1,570 and support at 1,520," he told Business Times.
Thong also noted that major Asian indices closed with mixed results due to differing reactions to the outlook of a US interest rate cut, with investors anticipating an earlier cut.
He said the US Federal Reserve's decision this week to adhere to its projection of three rate cuts this year has sparked contrasting views, resulting in investor confusion regarding the interest rate's trajectory.
