SHARE prices on FTSE Bursa Malaysia KLCI (FBM KLCI) are likely to remain sideways drift this week as investors continue to look for clearer signs of where the United States government shutdown is heading, analysts say.
Will it end anytime soon or will the budget stalemate drag on? That is the question on the minds of every investor.
Analysts say while the impact on the market has so far been relatively limited, investors have continued to remain wary and cautious.
They say the only good thing that may emerge from this is that the budget conflict could see the US government forgoing its plan to taper off the quantitative easing policy.
This should be positive for the market, especially the emerging economies, which had experienced significant amount of outflow of funds in recent months.
On the local front, new leads are needed to boost the market and these may come from the upcoming Umno election and 2014 Budget announcement.
Last week, while market sentiment was quite low, local funds helped cushion the market from a major downturn, unlike other key regional markets.
This, analysts believe, will continue to be the order of the day this week.
The FBM KLCI is expected to consolidate between the 1,760 and 1,780 points range.
At the end of last Friday's closing, the benchmark FTSE Bursa Malaysia KLCI added 0.4 point to 1,776.56 points from 1,776.16 in the previous Friday.
Weekly volume slipped to 8.94 billion shares valued at RM8.33 billion from 10.636 billion shares valued at RM9.17 billion recorded in the week before.
The Main Market turnover decreased to 6.02 billion units worth RM7.65 billion from 7.49 billion units worth RM8.494 billion recorded previously.