Malaysian stocks are expected to remain rangebound next week, with investors unlikely to be heavily swayed by the outcome of a crucial weekend by-election, analysts said Friday.
The by-election is a three-way fight between candidates from the ruling Barisan Nasional party and two challengers, and many view it as a test of the government's popularity since disastrous national polls last year.
"The market was weak this week as investors anticipate the ruling coalition may lose in the upcoming by-election this Saturday," Stephen Soo, an analyst with TA Securities told AFP.
"However, regardless of who wins, it is expected to have minimal effect on the market which will continue to slumber in low volume trade next week," he added.
Soo said he expected the benchmark index to trade in a broad 878-907 range for the week ahead. For the week to January 16, the Kuala Lumpur Composite Index dropped 20.89 points or 2.27 percent to 898.18 points.
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