By Mohd Khairi Idham Amran

KUALA LUMPUR, Oct 20 (Bernama) -- Bursa Malaysia is expected to trade in a cautious mode next week weighed by external concerns, an analyst said.

Maybank Investment Bank Chartist Nik Ihsan Raja Abdullah said concerns about China's growth, trade disputes and rising US interest rate were expected to drag the FTSE Bursa Malaysia KLCI (FBM KLCI) lower.

“FBM KLCI is also expected to trade in a small range of between 1,720 and 1,750 next week,” he told Bernama.

He said the market would turn its attention to the upcoming 2019 Budget that would be tabled in Parliament on November 2, after the tabling of the 11th Malaysia Plan (11MP) on October 18 provided clearer direction on government policies and directions going forward.

In the week just-ended, Bursa Malaysia started the first two days on a positive note before external concerns on geopolitical stability between the US and Saudi Arabia pulled the local market lower on the third day.

The market was further dampened by concerns over rising US interest rate after the US Federal Open Market Committee meeting minutes showed a general consensus to do so.

Telekom Malaysia and Top Glove’s shares were in focus after it was reported that the latter could replace the former in the index constituents in the next round of review.

Meanwhile, MyEG and Datasonic hogged the limelight in the last trading day after news emerged that both counters were implicated in the former Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi’s corruption cases.

This resulted in MyEG shares being suspended from 2.30 pm on Friday and will resume trading on Monday.

Both companies, in their filings to Bursa Malaysia, refuted the allegations.

On a Friday-to-Friday basis, the benchmark FBM KLCI settled 1.4 points firmer at 1,732.14.

The FBM Emas Index lost 11.34 points to 11,970.52, the FBMT100 Index decreased 9.63 points to 11,799.99 and the FBM Emas Shariah Index declined 42.84 points to 11,946.12.

The FBM 70 fell 85.94 points to 13,774.15 while the FBM Ace rose 91.94 points to 5,099.96.

On a sectoral basis, the Finance Index increased 36.84 points to 17,565.46, the Plantation Index was 15.17 points better at 7,426.97 and the Industrial Products and Services Index edged up 1.51 points to 173.11.

Weekly turnover decreased to 7.96 billion units valued at RM8.02 billion against 10.15 billion units valued at RM10.68 billion.

Main Market volume was lower at 5.54 billion shares worth RM7.52 billion versus 6.71 billion shares worth RM10.03 billion.

Warrants turnover declined to 1.27 billion units valued at RM262.7 million from 1.90 billion units valued at RM357.70 million.

The ACE Market volume declined to 1.14 billion shares worth RM241.96 million from 1.57 billion shares worth RM289.37 million.

-- BERNAMA