Bursa Malaysia is expected to have range-bound trading with slight upward movement as the Hari Raya holiday nears. Analyst Mohd Sedek Jantan indicates levels to watch. Recent equity corrections due to external factors may stabilize, affecting foreign outflows. Last week, FBM KLCI dipped slightly, while other indices displayed varied performances. Market turnover increased amid shifts in trading activities.
Bursa Malaysia is projected to maintain range-bound trading next week with a mild upward trend as the Hari Raya holiday approaches, according to an analyst from UOB Kay Hian Wealth Advisors. Mohd Sedek Jantan, the head of investment research, noted that the FTSE Bursa Malaysia KLCI (FBM KLCI) is fluctuating between 1,510 and 1,515, monitoring resistance at 1,550 and support at 1,500.
Despite recent declines in Malaysian equities resulting from several unrelated factors, some external pressures such as US import tariff risks, the ongoing Russia-Ukraine conflict, and uncertainties regarding China’s economic performance are expected to ease gradually. This easing is likely to stabilize foreign equity outflows, as stated by Jantan.
During the preceding week, the trading environment was characterized by caution among investors, amidst significant fund reallocations driven by trade tensions and geopolitical factors. The FBM KLCI saw a decrease of 6.70 points, ending Friday at 1,505.45.
Several indices presented mixed results; the FBM Emas Index rose by 5.65 points, while the FBMT 100 Index dropped by 8.45 points. The FBM Emas Shariah Index increased by 37.59 points, and both the FBM 70 Index and FBM ACE Index saw significant gains of 149.60 and 146.96 points, respectively.
Sector-wise, while the Plantation Index increased by 80.18 points to 7,449.93, the Industrial Products and Services Index and the Financial Services Index experienced slight declines. Overall market turnover rose to 16.55 billion units valued at RM12.15 billion, compared to the prior week’s 16.40 billion units valued at RM14.47 billion, denoting increased trading activity ahead of the holiday.
However, specific markets such as the Main Market and ACE Market recorded decreases in volume, indicating a shift in trading behaviors. Bursa Malaysia’s activities were briefly halted on Tuesday due to the Nuzul Al-Quran holiday, impacting intermediate trading patterns.
In summary, Bursa Malaysia is anticipated to continue its range-bound trading next week with potential upward movement as the Hari Raya holiday approaches. While some external factors impacting equity flows are expected to diminish, the market exhibited cautious trading patterns in the past week. Various indices showed mixed performances, emphasizing the need for continued monitoring of market dynamics as investor sentiment fluctuates.
Original Source: www.bernama.com
