Investors would most probably remain on the sidelines of Bursa Malaysia as the market extends its downward trend this week.

External factors such as the impact of high oil price, inflationary pressures and weakening consumer demand are expected to influence the direction of the market.

Last Friday, the benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) closed 3.58 points lower to 1,522.75.

Throughout last week, the market saw a wave of selling with the benchmark FBM KLCI traded mixed with only two days of gain.

Despite the negative sentiment, Bursa Malaysia is expected to show some improvements in the later part of the week following the fresh corporate newsflow recently.

Announcements like the Capital Market Master Plan 2, as well as listings, debt issuances and the ringgit notching a record high against the US dollar since 1997 would create more vibrancy in the capital market.

The ringgit moved on speculation that regional central banks including Bank Negara will keep raising the borrowing costs to curb inflation.

The index is expected to move between 1,510 and 1,535 points this week despite the absence of fresh leads in the local market.

On a weekly basis, the key index rose by 0.81 point to close at 1,522.75 from 1,521.94 the previous Friday.

Weekly volume rose to 5.873 billion shares worth RM7.408 billion from 5.613 billion shares valued at RM8.476 billion last week.

Main Market turnover declined to 4.056 billion shares valued at RM5.316 billion from 4.421 billion units valued at RM8.231 billion last Friday.

Volume on the ACE Market increased to 1.390 billion shares worth RM279.745 million from 533.719 million shares worth RM100.267 million previously.