Malaysian shares are set to remain range-bound next week as investors keep to the sidelines amid weaker than expected corporate earnings, analysts said Friday. "The index has been pretty range-bound in the past week despite stronger performance in the regional markets. We expect this trend to continue into," said analyst Stephen Soo from local brokerage TA Securities.
"The weaker than expected corporate earnings and fears of the global economy moving into recession will dampen investor sentiments in the local bourse," he told AFP.
He said the market is expected to face a strong resistance at the 880-900 level and trade is likely to remain range-bound within 850-880 points. Malaysia's central bank on Friday announced the economy expanded at a slower rate of 4.7 percent in the third quarter amid a "sharp deterioration" in the global economy.
The economy grew by 6.7 percent in the second quarter and 7.1 percent in the first quarter of 2008. Earlier this month, the government cut its 2009 growth forecast to 3.5 percent from its initial target of 5.4 percent. It also revised downward its 2008 GDP forecast to 5.0 percent. For the week to November 28, the Kuala Lumpur Composite Index remained flat, inching down 0.74 points or 0.1 percent to 866.14 points.
Daily average volume fell to 518 million shares worth 507.6 million ringgit (140.3 million dollars) from 580.22 million shares valued at 677.28 ringgit last week.