Bursa Malaysia is expected to continue range-bound trading next week, with the FBM KLCI fluctuating between 1,510 and 1,515. External challenges are projected to lessen, helping to stabilize the market. During the past week, the FBM KLCI saw a decline, and sector performances varied, reflecting investor caution ahead of the upcoming Hari Raya holiday.
Bursa Malaysia is anticipated to maintain a range-bound trading pattern next week with a slight upward trend as the market approaches the Hari Raya holiday. Mohd Sedek Jantan, the head of investment research at UOB Kay Hian Wealth Advisors Sdn Bhd, noted that the FTSE Bursa Malaysia KLCI (FBM KLCI) is trading between 1,510 and 1,515, with critical resistance at 1,550 and support at 1,500.
Jantan indicated that despite recent sharp corrections in Malaysian equities caused by various unrelated factors, external challenges such as US import tariff risks, the Russia-Ukraine conflict, and concerns regarding China’s economic stability are expected to ease, thus contributing to the stabilization of foreign equity outflows.
In the past week, the FTSE Bursa Malaysia KLCI (FBM KLCI) experienced cautious trading due to significant investor hesitation and fund reallocations influenced by trade tensions, central bank policies, and geopolitical events. On a weekly basis, the key index declined by 6.70 points, reaching 1,505.45 compared to the previous week’s 1,512.15.
Sector performances showed mixed results, with the FBM Emas Index up by 5.65 points to 11,305.79, while the FBMT 100 Index fell by 8.45 points to 11,061.38. The FBM Emas Shariah Index saw an increase of 37.59 points to 11,027.17, the FBM 70 Index surged by 149.60 points to 16,288.07, and the FBM ACE Index increased by 146.96 points to 4,824.64.
Trading volume was slightly higher at 16.55 billion units valued at RM12.15 billion, compared to 16.40 billion units valued at RM14.47 billion during the previous week. The Main Market volume decreased to 6.12 billion units from 10.95 billion in the prior week, while the turnover of warrants eased to 4.97 billion units valued at RM671.69 million. The ACE Market volume slid to 1.45 billion units worth RM524.70 million.
Bursa Malaysia and its subsidiaries were closed on Tuesday for the Nuzul Al-Quran public holiday.
In summary, Bursa Malaysia is set to experience continued range-bound trading with a slight upward bias in anticipation of the Hari Raya holiday. The market’s resilience is expected to improve as external pressures subside. Mixed sector performances and variations in trading volume indicate a cautious stance among investors. Overall, the marketplace is navigating through additional headwinds that may influence its trajectory in the coming weeks.
Original Source: www.bernama.com
