Malaysian share prices are expected to trade sideways in the coming week in the absence of new leads, which will keep investors sidelined, dealers said.
They said the final week of the year had seen some window-dressing activities that pushed the key index near to the 900 points level, but that tepid conditions would continue.
"The start of the year is likely to witness a repeat of the dour trading conditions in the absence of new catalysts to sustain a meaningful uptrend," said Victor Wan, a senior analyst at Mercury Securities.
"With the dearth of new leads, most investors will continue to stay on the sidelines, but the key index should be able to hang on to the gains it recorded last week as selling pressure is noticeably absent," he said.
Wan said that, apart from the Shanghai market, the Kuala Lumpur Composite Index (KLCI) had been the worst performing bourse in the Asia-Pacific region in 2005 and that dampened sentiment would linger into the new year.
"Concerns over corporate earnings, inflation, fuel cost, interest rates, economic growth and the slow pace of corporate restructuring ... have all been cited for the KLCI's anaemic performance," he said.
"Going into 2006, the above concerns will still be omnipresent due to the continuing uncertainties, but it's not all bleak as the market could play catch up," said Wan, adding that the market needed a catalyst.
For the shortened week to December 30, in which Monday was a public holiday, the Composite Index gained 7.66 points or 0.86 percent to 899.79.
Average daily volume was 318 million shares worth 445.63 million ringgit (117.90 million dollars) compared to 267.44 million shares valued at 474.73 million ringgit in the previous week.
At the close, the ringgit was traded at 3.7799 to the US dollar and 4.4720 to the euro.
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