By Nurul Jannah Kamaruddin

KUALA LUMPUR, Sept 19 -- Bursa Malaysia is expected to trade at the current level next week, with the benchmark index hovering within a range of 1,510 to 1,540 ahead of the release of the August inflation data, FTSE Russell's decision on Malaysian bonds, and the Sabah state election. 

The confluence of these factors seems to place the market in a cautious mode.

FTSE Russell is expected to announce its decision next week on whether it will keep Malaysia in its World Government Bond Index (WGBI).

Meanwhile, the Department of Statistics Malaysia (DOSM) will be releasing the inflation data on Wednesday.

Malaysia's Consumer Price Index (CPI) declined 1.3 per cent in July to 119.9 from 121.5 in the same month last year, which was within expectations in light of lower fuel prices.

The decrease in the overall index was due to a decline in transport, as well as housing, water, electricity, gas, and other fuels.

Meanwhile, the Sabah election will take place on Sept 26.

“The Sabah state election could strengthen further political certainty moving forward, which is something favoured by investors," Bank Islam Malaysia Bhd economist Adam Mohamed Rahim told Bernama.

In addition, COVID-19 vaccine developments will give a boost to local sentiment. AstraZeneca has resumed its phase-three coronavirus vaccine trial though sentiment is still cautious. 

During the week, the market was mostly mixed but was trending higher with the FTSE Bursa Malaysia KLCI (FBM KLCI) hitting the 1,540 level amid COVID-19 optimism, bullish China data, and oil prospects despite not-so-rosy developments in the US economy.

The US Federal Reserve (Fed) chairman Jerome Powell during the week indicated that interest rates would be kept near zero and were likely to stay that way until at least 2023.

He also warned about the outlook of the US economy despite it recovering quicker than expected.

The Fed revised estimates for economic growth in 2021 and 2022 downwards to 4.0 per cent and 3.0 per cent, respectively.

During the week, a slew of economic data from China, COVID-19 vaccine headlines and pledges by central banks to roll out more stimulus hopes to revive their economies, boosted regional bourses, including Malaysia. 

It was reported AstraZeneca had resumed British clinical trials of its COVID-19 vaccine, suspended after a test-patient fell ill.

On a Friday-to-Friday basis, the FBM KLCI ended 1.78 points higher at 1,506.63 compared with 1,504.85 previously.

On the scoreboard, the FBM Emas Index perked 86.14 points to 10,837.62 from 10,751.48, the FBMT 100 Index advanced 78.20 points to 10,651.74 from 10,573.54 and the FBM Emas Shariah Index went up 194.53 points to 12,837.07.

The FBM 70 surged 359.64 points to 14,032.03, while FBM ACE Index slid 94.13 points to 10,651.74.

Sector-wise, the Financial Services Index dropped 96.10 points to 12,569.35, but the Plantation Index rose 144.07 points to 7,151.95 and the Technology Index was up 0.60 of-a-point at 54.71.

The Healthcare Index gained 180.43 points to 3,613.35 and the Industrial Products and Services Index inched up 1.36 points to 136.70.

Weekly turnover widened slightly to 33 billion units valued at RM22.31 from 32.89 billion units valued at RM24.87 billion last week.

Main Market volume shrank to 19.05 billion shares worth RM17.29 billion from 22.74 billion shares worth RM19.94 billion.

Warrants turnover fell to 3.56 billion units valued at RM1.01 billion from 4.04 billion units worth RM1.03 billion.

The ACE Market volume narrowed to 9.93 billion shares worth RM4 billion from 12.99 billion shares valued at RM3.88 billion previously.

The market was closed on Wednesday for Malaysia Day.

-- BERNAMA