Malaysian share prices are expected to trade sideways ahead of the US Federal Reserve's next rate-setting meeting, a fund manager said on Friday. "Financial markets are hoping for a 50-basis-points cut," said Phua Lee Kerk, a fund manager with Pheim Unit Trusts Bhd.
"If the actual cut came in lower than expected, global stock markets may experience another around of selling." Phua said the local bourse was likely to remain quiet in the first half of the week as investors refrain from making aggressive bets ahead of the outcome of the Federal Reserve meeting on January 29-30.
"Based on global markets' performance after the Fed's surprise 75-basis-points cut, a 50-basis-points cut is unlikely to move stock markets in a big way," he said.
The Malaysian bourse will be closed on Friday, February 1 for a holiday. For the shortened four-day trading week to January 25, the local bourse fell 2.4 percent - 34.09 points - to close at 1,405.4.
Average daily volume was 1.28 billion shares valued at 2.91 billion ringgit (898 million dollars) up from 1.1 billion shares worth 2.44 billion ringgit in the previous week.
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