The FTSE Bursa Malaysia KLCI fell 16.54 points to 1526.43 points. Yesterday's close was 0.46 per cent lower than the new year's first day close of 1533.42 points.
The benchmark index closed at a record of 1574.49 points last Monday.
Maybank Investment Bank Bhd's head of retail research Lee Cheng Hooi said the blue chip index could fall to as low as 1525 points.
"The market is sluggish, and some funds are getting out a bit," said Lee, adding traditionally buying interest will come back after the Chinese New Year (CNY) holidays.
The market will still have to breach the 1576 level to sustain a rise. Lee said the research house has a year end 1710 target.
Mercury Securities head of research Edmund Tham, meanwhile, believes that foreign funds are still in the market but they may have taken some profits ahead of the lunar new year.
"Some of them may have locked in gains, ahead of the long holiday period, as they will not be able to react to what's happening in the US and Europe during the period," said Tham.
Next week, the market will be closed for three trading days. On February 1, Bursa is closed for the Federal Territory public holiday, while on the 3rd and 4th, it will be closed for the Chinese New Year.
"The ringgit is strong and Malaysia is an inflation steady country unlike the Philippines and Indonesia," opined Tham to support his assessment that the exchange here is still being eyed by foreign funds.
The ringgit yesterday closed stronger against the US dollar to RM3.0525, as the currency approached a 13-year high. The ringgit reached RM3.0475 on January 14, the strongest level since October 1997.
Normally, a currency would weaken when there is an outflow of funds, while it becomes stronger when there is greater demand.
Normally, a currency would weaken when there is an outflow of funds, while it becomes stronger when there is greater demand.
Read more: Investors take profits ahead of CNY holidays
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.