Malaysian shares are likely to trade lower as sentiment remains negative on concerns over the global economic outlook as oil prices remain high, analysts said Friday. "The local bourse will likely continue to consolidate going forward. The US economy does not look good and may spring more unpleasant surprises," said Pong Teng Siew, head of research at MIMB Investment Bank.
The market was also rocked by former prime minister Mahathir Mohamad's decision this week to quit the ruling party, a move seen as pressuring Prime Minister Abdullah Ahmad Badawi to step down.
Mahathir has become Abdullah's harshest critic, accusing him of mismanagement and nepotism. "We are maintaining our 'sell on rally' strategy as unsettling newsflow in the local political scene, have fogged up the market," said Phua Kwee Hock, an analyst at SJ Securities. "Until clarity emerges on the political front, the Malaysian market will just be (dawdling)," he said.
For the week ending May 23, with trading shortened to four days after a public holiday, the benchmark composite index fell 25.89 points or 2.0 percent to 1,274.78.
Daily volume averaged 553.7 million shares worth 1.32 billion ringgit (412.5 million dollars) compared with 557.2 million shares worth 1.18 billion ringgit the previous week.