KUALA LUMPUR: Bursa Malaysia is predicted to pattern barely greater this week, hovering throughout the 1,600-1,620 vary, mentioned an analyst.
Rakuten Commerce Sdn Bhd fairness analysis vice-president Thong Pak Leng mentioned the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) moved in a good consolidation mode all through the final week, nevertheless it managed to shut above the 1,600 stage for 2 buying and selling days.
“We’re cautiously optimistic given the development in native market sentiment and overseas assist, however traders will keep alert on the growing market volatility and exterior uncertainties,” he advised Bernama.
Financial institution Islam (M) Bhd chief economist Mohd Afzanizam Abdul Rashid opined that Bursa Malaysia’s key index could be transferring in a good vary this week.
He mentioned points surrounding america Federal Reserve’s aggressive financial tightening in addition to the army battle in Ukraine would proceed to dominate the fairness market sentiments this week.
For the week simply ended, he mentioned there was concern over doable financial recession on the horizon following the inversion of the US Treasury yield curve when the yield unfold between the ten and two-year yield turned adverse at minus seven and minus three foundation factors on April 1 and 4.
“Usually, the inversion of yield curve could be related to financial recession given the predictive energy it has traditionally. This could possibly be the explanation that the FBM KLCI was having difficulties piercing the psychological stage of 1,600 factors,” he mentioned.
Mohd Afzanizam famous the US shopper worth index for March, to be launched this week, could be an necessary information to take a look at to gauge the US inflation stage, whereby the out-turn is predicted to be greater by 8.3% year-on-year based mostly on consensus estimates from 7.9% within the earlier month.