Bursa Malaysia Projected to Sustain Range-Bound Trading in Upcoming Week

Bursa Malaysia is expected to engage in range-bound trading with slight upward bias as the Hari Raya holiday nears. Analysts predict the FBM KLCI will trade between 1,510 and 1,515. The past week saw slight declines in the index, reflecting cautious investor behavior amidst global market influences. Overall market turnover has shown minor increases and variations across sectors.

Bursa Malaysia is anticipated to exhibit range-bound trading with a slight upward trend as it approaches the Hari Raya holiday. According to Mohd Sedek Jantan, head of investment research at UOB Kay Hian Wealth Advisors Sdn Bhd, the FTSE Bursa Malaysia KLCI (FBM KLCI) is projected to trade between 1,510 and 1,515, with significant watch points being the resistance at 1,550 and support at 1,500.

Despite a sharp correction in Malaysian equities due to various factors, Jantan expects external pressures, such as US import tariff risks, the ongoing Russia-Ukraine conflict, and concerns regarding China’s economic performance, to gradually ease. This easing could stabilize foreign equity outflows.

During the past trading week, the FBM KLCI faced cautious trading conditions, influenced by investor hesitancy and shifts in funds across global markets, driven by trade tensions, central bank policies, and geopolitical issues. The index decreased by 6.70 points, closing at 1,505.45 compared to the previous week’s 1,512.15.

Additionally, sector performances varied: the FBM Emas Index rose by 5.65 points to 11,305.79, while the FBMT 100 Index decreased by 8.45 points to 11,061.38. The FBM Emas Shariah Index increased by 37.59 points to 11,027.17, the FBM 70 Index surged by 149.60 points to 16,288.07, and the FBM ACE Index grew by 146.96 points to 4,824.64.

Market turnover showed slight increases, totaling 16.55 billion units valued at RM12.15 billion compared to the previous week. Main Market volume declined, and trading in warrants and the ACE Market also saw reductions. It is notable that Bursa Malaysia and its associated entities observed a closure on Tuesday in light of the Nuzul Al-Quran public holiday.

In summary, Bursa Malaysia is likely to maintain its range-bound trading patterns with expectations of slight upward movement as the Hari Raya holiday approaches. Factors influencing market performance include external pressures and cautious investor sentiment, although certain sectors experienced gains. The market’s turnover and trading volumes exhibited slight shifts while several key indexes fluctuated in their respective performances.

Original Source: www.bernama.com