KUALA LUMPUR, July 4 — Bursa Malaysia’s benchmark index is expected to extend its recovery next week and test the psychological 1,700-point level, underpinned by Friday’s strong rebound and continued buying from local institutional investors.

IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said improving global risk sentiment is likely to provide a favourable backdrop for regional equities, including Bursa Malaysia. 

“The combination of lower geopolitical risks and a potentially more accommodative monetary policy environment has helped improve appetite for risk assets globally,” he told Bernama.

However, he said that a sustained break above this milestone will require broader market participation, particularly from heavyweight banking stocks, alongside continued domestic institutional support and a return of foreign buying.

“Stronger corporate earnings guidance and improving global market sentiment will also be important catalysts to support a more durable rally,” he added.

For the week just ended, Bursa Malaysia ended mostly lower as late-session profit-taking intensified, reflecting investors’ cautious sentiment amid the absence of fresh market catalysts.

On a Friday-to-Friday basis, the key index advanced 11.31 points to 1,679.05 from 1,667.74 a week earlier.

On the index board, the FBM Emas Index jumped 91.99 points to 12,457.01, the FBMT 100 Index widened 81.71 points to 12,283.30, and the FBM Emas Shariah Index climbed 50.93 points to 12,292.23.

The FBM Mid 70 Index surged 114.17 points to 17,840.36 and the FBM ACE Index soared 149.31 points to 4,894.61.

By sector, the Plantation Index rose 86.56 points to 8,969.54, the Energy Index gained 12.70 points to 758.60, the Financial Services Index garnered 168.84 points to 19,831.96, and the Industrial Products and Services Index perked up 2.85 points to 182.44.

Weekly turnover decreased to 13.63 billion units worth RM11.11 billion from 15.54 billion units worth RM13.11 billion a week earlier.

The Main Market volume declined to 6.73 billion units valued at RM9.72 billion against 7.78 billion units valued at RM11.58 billion previously.

Warrants turnover trimmed to 4.29 billion units worth RM529.34 million versus 5.15 billion units worth RM628.56 million last week.

The ACE Market volume increased marginally to 2.60 billion units valued at RM860.50 million compared with 2.59 billion units valued at RM899.90 million in the previous week. — Bernama