Bursa Malaysia is projected to maintain range-bound trading next week, with potential upward momentum ahead of Hari Raya. Key index levels are identified, while external factors influencing market fluctuations are expected to stabilize. Mixed sector performances and turnover changes characterize the recent trading week, as the market adapts to ongoing global challenges.
Bursa Malaysia is anticipated to continue a range-bound trading pattern next week, particularly with a slight upward bias as the Hari Raya holiday approaches. According to Mohd Sedek Jantan, head of investment research at UOB Kay Hian Wealth Advisors, the FTSE Bursa Malaysia KLCI (FBM KLCI) is currently located between 1,510 and 1,515, with key levels of resistance at 1,550 and support at 1,500.
Jantan also noted that while Malaysian equities have undergone significant correction due to various factors, it is expected that external pressures—such as US import tariff risks, the ongoing Russia-Ukraine conflict, and concerns regarding China’s economic performance—will gradually ease, helping stabilize foreign equity outflows. The previous week saw cautious trading in the FTSE Bursa Malaysia KLCI, primarily influenced by investor caution and fund reallocations amidst global market dynamics.
Comparatively, on a Friday-to-Friday basis, the key index fell by 6.70 points to 1,505.45, down from 1,512.15 the week prior. The FBM Emas Index increased by 5.65 points to 11,305.79, while the FBMT 100 Index declined by 8.45 points to 11,061.38. Additionally, the FBM Emas Shariah Index rose by 37.59 points to 11,027.17. The FBM 70 Index climbed by 149.60 points to 16,288.07, and the FBM ACE Index saw an increase of 146.96 points to 4,824.64.
Sector performance revealed mixed results, as the Industrial Products and Services Index dipped by 0.30 points to 153.43, and the Financial Services Index decreased by 82.99 points to 18,439.83. Conversely, the Plantation Index rose by 80.18 points, reaching 7,449.93, and the Energy Index increased by 33.07 points to 751.80. Overall market turnover was marginally increased to 16.55 billion units valued at RM12.15 billion, compared to 16.40 billion units worth RM14.47 billion from the previous week.
Further details indicate that the Main Market volume decreased to 6.12 billion units, with the preceding week witnessing 8.96 billion units at RM13.18 billion. Turnover of warrants dropped to 4.97 billion units valued at RM671.69 million, while the ACE Market volume declined to 1.45 billion units valued at RM524.70 million, down from 1.97 billion units worth RM667.75 million previously. Notably, Bursa Malaysia and its subsidiaries were closed on Tuesday for the Nuzul Al-Quran public holiday.
In summary, Bursa Malaysia is poised for a week of range-bound trading, influenced by an anticipatory increase related to the upcoming Hari Raya holiday. While market fluctuations have occurred due to various external factors, future stability is expected as these pressures gradually diminish. The mixed performance across indices and sectors reflects the current market sentiment, as investors navigate uncertain global conditions, with turnover figures generating slight variances in overall trading activity.
Original Source: www.bernama.com
