Malaysian share prices will undergo a correction next week as global oil prices are expected to pick up and surpass the 60-dollars per barrel mark, analysts said Friday.
"The market had been partly running on easing liquidity expectations and a reversal in such perception should oil prices pick up further will result in meaningful correction," said Victor Wan, senior analyst with Mercury Securities.
The market in the past week had been boosted by merger and acquisitions exercises and seasonal corporate earnings reports had been generally positive. Wan said the market was currently running on sentiment as the index continued its rising trend.
However he noted that as oil prices was "creeping up", the outlook for inflation could be altered adversely, putting a damper on the bullish performance.
For the week ending December 1, the index gained 19.68 points or 1.86 percent to close at 1,080.11. Average daily volume increased to 1.32 billion shares worth 1.96 billion ringgit (541.4 million dollars) compared 1.17 billion shares worth 1.47 billion ringgit last week.