19/05/2012 (Bernama) - Shares on Bursa Malaysia are likely to dip further amid persistent worries over the global economy, analysts said.

They also expected more local bearishness on the weakening ringgit and commodities -- the ringgit, oil and CPO (crude palm oil) prices are down 2.2 per cent, 3.1 per cent and 5.7 per cent respectively -- due to negative external factors.

These were attributed to growing fears over the eurozone breakup, following the new European politics with anti-austerity parties forming post-election governments.

Affin Investment Bank Head of Retail Research Dr Nazri Khan expects the local bourse to test the psychological 1,500 support level.

He said the market remains uncertain on concern that Europe's debt crisis was deepening with the European Central Bank's (ECB) decision to halt lending to Greece banks and Spain following Moody's ratings downgrade of 16 Spanish banks.

Meanwhile, investors remained fearful that a Greek exit from the euro will increase contagion across the continent's financial system, he said.

On the flip side, Nazri said despite all the worries about the eurozone, opportunities have appeared within the market as the global market tumbles.

He said global central banks stand ready to launch a monetary stimulus package if conditions warrant it as well as further intervention by the ECB to calm markets.

"Any news by the ECB to engage in direct and large-scale quantitative easing to stem the euro crisis is likely to push the market higher," he said.

Nazri also said that ample local liquidity and positive local themes such as the upcoming mega flotation exercises like Felda Global Ventures Bhd and impending project news flow such as RM15 billion North Malay Basin will cushion market decline in the near term.

For the week just ended, the market was lower, pressured by weaker external sentiment.

On a Friday-to-Friday basis, the FBM KLCI declined 51.86 points to 1,532.46.

The Finance Index dropped 442.83 points to 13,730.49, the Industrial Index eased 112.35 points to 2,681.1 and the Plantation Index decreased 535.69 points to 8,104.51.

The FBM Emas Index dipped 408.38 points to 10,444.55, the FBM ACE Index was 314.31 points lower at 4,228.37, the FBM Mid 70 Index eased 577.62 points to 11,302.36 and the FBM T100 Index decreased 381.93 points to 10,273.85.

Total weekly volume fell to 5.768 billion shares valued at RM8.262 billion from 6.033 billion shares worth RM6.45 billion.

The Main Market turnover increased to 3.89 billion worth RM7.97 billion from 3.702 billion valued at RM6.073 billion previously.

Volume on the ACE Market decreased to 1.3 billion worth RM215.75 million from 1.544 billion shares valued at RM272.771 million.

Warrants decreased to 522.02 million units worth RM63.62 million from 767.848 million units valued at RM96.247 million.