FACED with a lack of fresh local catalyst and growing geopolitical tension in the Middle East and Ukraine, Bursa Malaysia is expected to consolidate further this week, with the FTSE Bursa Malaysia KLCI (FBM KLCI) likely to move sideway between 1,863 and 1,889 points with a downward bias, said Kenanga Research.

It said the local stock market is now in August, which in past years had proven to be a tough month for the equity market, thus making third quarter a weak, if not the weakest, quarter during the year.

However, Kenanga Research said rotational play on the small cap and third liner stocks are expected to continue.

"For now, we adhere to our 'buy-on-weakness' strategy with an ideal buying level of below 1,835," it said in a note yesterday.

Key corporate events expected this week is the first quarter earnings release by Hartalega Holdings Bhd, one of Kenanga Research's top picks for third quarter 2014 strategy.

"Our rubber glove analyst expects stronger quarter-on-quarter results (for Hartalega) on the back of better operational efficiency and average selling price," it added. Bernama