Bursa Malaysia Expected to Be Traded With an Increasing Tendency Next Week

KUALA LUMPUR: Bursa Malaysia is expected to be traded with an increasing tendency next week, with the benchmark index expected to remain within the 1,725 to 1,750-point range, said analysts.

Rakuten Trade Sdn Bhd Head of Research Kenny Yee said the market is expected to remain in a consolidation phase as investors continue to assess resilient corporate earnings performance against persistent selling by foreign investors as well as uncertainties regarding global interest rates and geopolitical developments.

“Although corporate earnings are expected to remain healthy, the continued net foreign fund outflows over the past few weeks have limited the index’s upside potential,” he told Bernama.

IPPFA Sdn Bhd Investment Strategy Director and Economist Mohd Sedek Jantan said the FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to maintain its upward trajectory next week, although there may be profit-taking activities if the index surpasses the 1,740-point level following the recent gains.

He said the direction of global bond yield movements will continue to be an important factor, particularly for the Malaysian banking sector.

“The recent rise in US 10-year Treasury bond yields has increased the global discount rate and put pressure on bank valuations as investors reassess financing costs and net interest margin prospects.

“The continued recovery in Malaysian banking sector stocks is expected to require more stable global bond yields, supported by resilient domestic earnings and improved investment inflows,” he said.

Mohd Sedek said the market is expected to remain positive but more cautious, with the 1,740-point level, US Treasury bond yields, Brent crude oil prices and foreign fund flows expected to determine the sustainability of the next rally phase.

On a Friday-to-Friday basis, the FBM KLCI rose 9.09 points to 1,736.48 from 1,727.39 recorded last week.

On the index board, the FBM Emas Index rose 16.84 points to 12,832.28, the FBM Top 100 Index gained 24.66 points to 12,650.92 and the FBM Emas Shariah Index added 12.56 points to 12,641.79.

The FBM ACE Index surged 39.01 points to 5,333.79 and the FBM Mid 70 Index declined 142.15 points to 18,151.04.

By sector, the Plantation Index surged 113.25 points to 9,440.65, the Financial Services Index fell 70.63 points to 20,440.65, the Energy Index declined 2.43 points to 777.03 and the Industrial Products and Services Index dipped 0.01 points to 187.22.

Weekly trading volume increased to 18.70 billion units worth RM15.92 billion from 17.66 billion units worth RM14.42 billion the previous week.

Main Market trading volume rose to 9.84 billion units worth RM13.95 billion from 8.91 billion units worth RM12.59 billion previously.

Warrants trading volume rose to 5.60 billion units worth RM745.83 million from 5.30 billion units worth RM719.94 million last week.

ACE Market trading volume declined to 3.15 billion units worth RM1.60 billion from 3.42 billion units worth RM1.11 billion the previous week.

BERNAMA