The local epidemic is showing signs of fighting back. The FBM KLCI index rebounded at the end of last week, helped by glove stocks. However, market experts believe there could be arbitrage activity this week and Malaysian stocks will continue to fall ahead of potential window dressing towards the end of the year. The trend.
Looking back on last week, Bursa Securities rebounded slightly to 1535.41 at Monday’s close before falling for three consecutive days. In the same period, the lowest was 1516.75; The index closed at 1,518.85 on Thursday.
Fortunately, on Friday, the KLCI recovered most of this week’s losses, rising above 1530 to close at 1531.22, helped by a rebound in glove stocks.
Driven by market sentiment
In an interview with Nanyang Siang Pau, JF Apex Securities head of research Lee Choong Cheng pointed out that the Malaysian stock market has been quite sluggish this week, basically stuck in a tight range.
“With the domestic epidemic worsening and signs of a backlash in China and Europe, the rebound in the Malaysian equity market has been largely led by glove stocks, which means the Malaysian stock market is driven by sentiment rather than fundamentals.”
Meanwhile, he sees little market impact from bank Negara’s third-quarter GROSS domestic product (GDP) data on Friday; China’s GDP fell by 4.5% year-on-year in the third quarter.
Reprint indicated source：Spark Global Limited information