Bursa Malaysia is expected to engage in range-bound trading next week, influenced by holiday sentiment and easing external challenges. The FBM KLCI currently trends between 1,510 and 1,515, with key levels at 1,550 and 1,500. Investor caution persists in response to global events, with varied sector performances observed in recent trading volumes.
Bursa Malaysia is projected to maintain range-bound trading next week with a slight upward trend as the Hari Raya holiday approaches, according to analysts. Mohd Sedek Jantan, head of investment research at UOB Kay Hian Wealth Advisors, noted that the FTSE Bursa Malaysia KLCI (FBM KLCI) is fluctuating between levels of 1,510 and 1,515, with resistance at 1,550 and support at 1,500.
The recent sharp correction in Malaysian equities has been influenced by various unrelated factors. However, external challenges, including US import tariff uncertainties, the ongoing Russia-Ukraine conflict, and concerns regarding China’s economic stability, are expected to gradually ease, aiding in the stabilization of foreign equity outflows.
For the week that just concluded, the FBM KLCI experienced cautious trading, shaped by significant investor apprehension and fund reallocations across global markets, primarily due to trade tensions and geopolitical dynamics. The key index noted a decline of 6.70 points, closing at 1,505.45, down from 1,512.15 in the previous week.
In sector performances, the FBM Emas Index rose by 5.65 points to 11,305.79, while the FBMT 100 Index saw a decrease of 8.45 points to 11,061.38. Notably, the FBM 70 Index increased by 149.60 points to 16,288.07 and the FBM ACE Index grew by 146.96 points to 4,824.64. Contrastingly, the Industrial Products and Services Index dipped by 0.30 points to 153.43, and the Financial Services Index fell by 82.99 points to 18,439.83.
Trading volume experienced a slight increase, totaling 16.55 billion units valued at RM12.15 billion, compared to 16.40 billion units valued at RM14.47 billion the week prior. The Main Market volume decreased to 6.12 billion units from 8.96 billion units valued previously. The ACE Market also reflected a decline in volume, now at 1.45 billion units worth RM524.70 million.
Bursa Malaysia and its subsidiaries observed a closure on Tuesday for the Nuzul Al-Quran public holiday.
In summary, Bursa Malaysia is anticipated to continue its range-bound trading as external challenges are expected to stabilize. With key levels set for monitoring, market movements will be influenced by geopolitical events and economic concerns. Investors should remain cautious due to recent corrections across various indices, while trading volumes indicate a slight uptick. Overall, market conditions remain fluid as analysts assess further developments leading up to the holiday season.
Original Source: www.bernama.com
