Stocks to trade rangebound next week, say analysts

KUALA LUMPUR: Malaysian stocks are expected to be rangebound next week, with most investors likely to stay away from the market for the first part of the week, analysts said yesterday.

“The slow trading pace on the local market should extend ahead of a long weekend break due to (a) holiday next Monday, with most investors still evidently absent from the market,” brokerage firm TA Securities said in its research note.

Analysts said investors were also concerned over Thursday’s announcement by deputy premier Datuk Seri Najib Razak that the country’s 2009 budget deficit will be higher than the forecast 4.8 per cent of gross domestic product, because of a new stimulus package aimed at averting a recession.

Najib told state media the size of the deficit “depends on the fiscal pump-priming that we are going to do” but the government was aware of the need for it not to be “too high”.

Malaysia announced a RM7 billion (US$2 billion) stimulus package last year but has said that a second will be launched soon.

The brokerage firm said the index should remain trapped for the week ahead between 885 and 900 given the absence of positive leads.

— AFP

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