BURSA Malaysia is expected to remain in a consolidation mode this week amid lack of buying impetus and weak market sentiments.

Analysts said investors will continue to take a wait-and-see strategy before the year-end window-dressing mood starts in December. The absence of new catalysts has led the local bourse to be on the declining trend in the last couple of weeks, they added.

The FTSE Bursa Malaysia KLCI (FBM KLCI) lost 13.16 points to close at 1,809.13, making it the worst performer among key regional markets last week. This was despite Asian shares rising after latest statistics showed broad United States economic strength, while the yen rebounded from overnight multi-year lows.

Analysts believe that global growth will start to re-strengthen, which could potentially brighten up prospects in the global equity markets, including Malaysia.

"On the local front, we expect earnings growth to bounce back, driven by capacity expansion, merger and acquisition, and other corporate exercises to create new growth catalyst," said an analyst.

"The weaker ringgit is also a catalyst for the bearish market sentiment. Furthermore, the government has decided to stop petrol subsidies come December 1 and this added more concern of higher inflation for 2015 that may prompt the central bank to raise key interest rates," he added.

Analysts also expect the FBM
KLCI to test the 1,800-point psychological level, saying that if the market failed to be supported at this level, it may continue to fall downwards to the next support level of 1,770 points.

Meanwhile among stocks in focus include SapuraKencana Petroleum, Mah Sing Group and IJM Corp.

The Umno General Assembly, which kicks off tomorrow, is also expected to be closely watched by the market. By Muhammed Ahmad Hamdan