Malaysian share prices are expected to trade within a tight range on the lack of fresh leads, dealers said on Friday. They said the market should continue its consolidation phase after posting strong rallies since the end of February, while trade is expected to be quiet.
"A breakout from the current consolidation mode would need higher daily trading volume, probably two times the current trading volume," said Kok Chee Leong, a dealer with CIMB investment bank. "The benchmark index will have to stay firmly above its record high of 1,374 points," he added.
He said after the benchmark index had recorded a series of new highs, investors are now digesting their gains, placing the market in a consolidation mode. For the week ended June 15, the Kuala Lumpur composite index added 8.28 points or 0.61 percent to 1,360.65. Average daily volume rose to 1.363 billion shares worth 2.07 billion ringgit (598 million dollars) from 1.20 billion shares worth 1.96 billion ringgit a week earlier. The government is expected to announce inflation data for May on Wednesday.