KUALA LUMPUR: Bursa Malaysia reversed its recent gains on Friday to close lower as investors took profit amid the negative performance of its regional peers.
At 5pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 5.73 points to 1,611.02 compared to Thursday's close of 1,616.75.
The benchmark index started slightly lower at 1,615.76 and fluctuated between 1,608.41 and 1,616.26 during the trading session.
On the broader market, decliners led gainers 670 to 447, with 490 counters unchanged.
Turnover declined to 4.34 billion units worth RM2.95 billion from yesterday's 4.93 billion units worth RM3.79 billion. Rakuten Trade Sdn Bhd equity research vice president Thong Pak Leng reckoned the market undertone remains stable given the strong corporate earnings, healthy growth of the local economy and continuous inflow of foreign direct investments (FDIs).
He expects buying to resume next week despite a shorter trading week.
"The benchmark index staged a rebound and broke out from the 6-week downward channel pattern with a long white candle on Wednesday. "It has also moved further away from all exponential moving average (EMA) lines, with the 20-day EMA showing an upward trend," he told Business Times.
Thong anticipates this momentum will drive the index towards the next resistance level of 1,620, and a breakthrough above this level could signal further upward movement.
He said conversely, immediate support levels are now at 1,589–1,600.
"Therefore, we expect the FBM KLCI to hover within the 1,610-1,630 range for the next week," he noted.