Malaysian shares will likely remain range-bound next week due to continuing caution over the global economy despite an apparent easing in the domestic political climate, analysts said. They said, although Prime Minister Abdullah Ahmad Badawi's announcement that he would step down in 2010 had brought some stability to the market, worries about the US economy would bog down investor sentiment.
Allegations linking Deputy Premier Najib Razak to the gruesome murder of a Mongolian woman and fresh accusations by a young man that he was sodomised by opposition leader Anwar Ibrahim will also affect sentiment.
Abdullah on Thursday announced he would retire in mid-2010 and hand over power to his deputy, Najib. The premier has faced calls to quit since March general elections that handed the opposition unprecedented gains. For the week to July 11, the benchmark composite index rose 16.25 points or 1.4 percent to 1,150.39. Daily average volume was lower at 377 million shares worth 888 million ringgit (278 million dollars) from 433 million shares worth 775 million ringgit a week earlier.