Malaysian share prices are set to lose more ground in the week ahead, following a third consecutive week of losses amid rising global interest rates and weak investor interest, analysts said.
"As it is, the market has yet to find stability despite the past month's sell-down and is still susceptible to further falls," said Victor Wan, senior analyst with Mercury Securities.
"For one, the overriding concerns over the global interest rate direction will continue to keep investors wary and to force them to the sidelines. The gyrating regional bourses, most of which are still classified as emerging markets, will also weigh on the KLCI," he added.
Over the past week, the market succumbed to selling pressure as a result of a combination of rising global interest rates and persistently tepid investor interest, Wan said.
Local investors are still reeling from the recent sell down and will not be quick to return, even if stability is found, he added.
Next week, the key index is likely to trade in the range of 910 to 920 and "heavyweights and blue chips will be used as vehicles to support the market as well as to bring some relief from further significant sell off."
In the week ending June 9, the Kuala Lumpur Stock Exchange composite index closed down 1.85 points at 915.40 from 930.72 last Friday.
Average daily volume was 393.1 million shares worth 660.59 million ringgit (180 million dollars) compared to 472.52 million shares worth 802.5 million ringgit in the previous week.
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