Trading in Asian stocks was more or less directionless at the start of the new week. Share prices drifted within narrow ranges with neither buyers nor sellers dictating the pace.

The relevant bellwether indices in key regional markets opened slightly higher on June 29  but slipped into the red after the break. Most Asian markets ended the day with marginal losses.

 Trading on the Bursa Malaysia reflected a similar ambivalence. The KL Composite Index gyrated within a very tight band, slipping in and out of positive territory throughout the trading day. The benchmark index eventually closed practically unchanged at 1,075.8. There were roughly four losing counters for every three gaining ones at the close.

Trading volume on the local bourse declined quite a bit on June 29. Market volume fell to just over 877 million shares, compared to the daily average of about 1.33 billion shares last week. Time Engineering, Time dotCom and KNM were some of the most actively traded stocks for the day.

 Clearly, investors are undecided on what to do next and are waiting for fresh leads. Some market observers believe that the prevailing sentiment could persist over the next few weeks, especially if economic data continues to be mixed.

Among some of the key data due for release later this week are US unemployment report for June and consumer confidence indicator. The market expects unemployment will continue to rise – from a 25-year high of 9.4% in May – albeit at a slower pace. Elsewhere, although the consumer confidence index has recovered strongly, it has yet to translate into meaningful spending growth.

Last week, data indicated that Americans are spending less and saving more. Whilst the de-leveraging is a positive development after years of excessive, and ultimately unsustainable, consumption, the slow pickup in spending is a drag on recovery expectations. Consumer spending accounts for about 70% of economic activities the world’s largest economy.