A lack of interest and rising concerns over further United States interest rate hikes saw investors sidelined for most of the past week.
The Malaysian Institute of Economic Research cut its 2005 growth estimate to 4.9 percent from the 5.1 percent predicted earlier due to concerns over high crude oil prices and a still fragile electronics sector.
He said there would be few positives, with interest rates and inflation concerns forcing investors to remain sidelined.
"With the prevailing insipid and cautious market conditions, weakness will remain a feature with a probable base at around the 900 to 905 levels, which is also its two-month low," he said.
"It would also mean that the gains attained this year would have faded but if the bottom is found at the above levels, bargain-hunting opportunities could emerge," he said.
For the week ending October 21, the composite index fell 16.01 points or 1.73 percent to 909.58.
Average daily volume was 383.55 million shares worth 667.99 million ringgit (177 million dollars) compared to 380.156 million shares valued at 563.836 million ringgit in the previous week.
At the close on Friday, the ringgit was at 3.7748 to the US dollar and 4.5428 to the euro.