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SHARE PRICES LIKELY TO BE LOWER NEXT WEEK
KUALA LUMPUR, July 5 (Bernama) -- Share prices on Bursa Malaysia are expected to be lower next week with market players remaining concerned over the internal and external factors, dealers said.
"Investors will likely to remain on the sidelines until a clearer picture emerges on the health of the global economy," one of the dealers said.
He said the local market was also likely to attract bargain-hunting next week but it would be limited as players remained concerned over domestic and foreign issues.
According to the dealers, inflationary pressure, high crude oil prices and uncertainties in the US economy are the main concerns among investors.
"Investors are expected to stay on the sidelines, with shrinking volume indicating a lagging interest in the market," MIMB Investment Bank said in a research note.
"The KLCI (Kuala Lumpur Composite Index) is expected to continue sliding based on the lacklustre global environment. Any rebound will be shortlived," it said.
During the week just ended, trading on Bursa Malaysia was suspended on Thursday due to a system failure.
Bursa Malaysia's chief executive officer Datuk Yusli Mohamed Yusoff said the exchange had managed to resolve the technical glitches in its systems which led to the suspension of trading on the bourse for the whole day.
He attributed the problem to the equities trading system experiencing a hardware failure.
The last time that Bursa Malaysia experienced a system failure was in June 2000 when trading was halted for half a day due to a technical problem.
On Friday, the benchmark KLCI fell to a 16-month low due to foreign selling activities. It closed 19.56 points or 1.7 percent lower at 1,134.14, the lowest since March 6, 2007.
The index had hit an intra-day low of 1,119.97 during the afternoon session.
On a Friday-to-Friday basis, the KLCI eased 56.4 points to 1,134.14 from 1,190.54 last Friday.
The Industrial Index declined 101.5 points to 2,463.5, the Finance Index lost 416.86 points to 8,402.77 and the Plantation Index dropped 423.16 points to 7,454.78.
In the Financial Times Stock Exchange-Bursa Malaysia (FTSE-BM) Index series, the FBMEmas went down 402.4 points to 7,532.99, the FBM30 fell 351.99 points to 7,337.65, the FBM2BRD decreased 234.15 points to 5,293.58 and the FBM-MDQ was 214.61 points lower at 4,178.18.
Turnover declined to 1.79 billion shares valued at RM4.308 billion from 1.961 billion shares worth RM4.733 billion last Friday.
The Main Board volume dropped to 1.542 billion units valued at RM4.226 billion from 1.621 billion units worth RM4.693 billion previously.
Volume on the Second Board decreased to 84.732 million shares valued at RM56.211 million from 89.882 million shares worth RM68.701 million last week.
On the Mesdaq Market, volume was lower at 92.763 million units worth RM21.949 million compared to 118.876 million units valued at RM28.076 million last Friday.
Call warrants went down to 70.702 million shares valued at RM3.560 million from 131.755 million shares worth RM5.013 million previously.
Direct business deals dropped to 130.072 million units worth RM127.829 million against 401.265 million units valued at RM451.98 million last week. -- BERNAMA
PJR LC
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