Bursa Malaysia Expected To Trade In Narrow Range Next Week

KUALA LUMPUR: Bursa Malaysia is expected to record trading in a narrow range next week as investors continue to wait and assess several key economic data set to be announced amidst significant geopolitical uncertainty.

IPFA Sdn Bhd Investment Strategy and Economics Director, Mohd Sedek Jantan said investors will focus on the United States (US) Consumer Price Index (CPI) data for June scheduled to be announced on Tuesday, China’s second-quarter Gross Domestic Product figures on Wednesday, US retail sales for June on Thursday, and subsequently Malaysia’s CPI for June on Friday.

“While all these announcements will provide indications of global demand strength, inflation trends and domestic economic conditions, they are unlikely to significantly affect monetary policy prospects.

“We believe the US Federal Reserve will maintain its key interest rate for the remainder of this year, while Bank Negara Malaysia (BNM) is also expected to maintain the Overnight Policy Rate (OPR) at 2.75 per cent.

“This allows investors to focus more on growth prospects, corporate earnings and fund flows rather than policy expectation resets,” he told Bernama.

In addition, Mohd Sedek said geopolitical developments in West Asia will continue to be a key driver of investor sentiment next week.

“Any resurgence of tensions or prolonged conflict could raise expectations of tighter global energy supply, reigniting inflation concerns and dampening investor appetite for riskier assets.

“However, oil prices which have moderated again indicate that financial markets are not projecting serious supply disruptions at this time, thereby supporting overall market stability,” he said.

For the week-on-week performance comparison, the benchmark index rose 12.44 points to 1,691.49 from 1,679.05 the previous week.

Malaysia Gazzete