KUALA LUMPUR, March 28 — Bursa Malaysia is expected to trade cautiously next week as the unresolved West Asia conflict continues to shape global market direction.

IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said that while intermittent signs of de-escalation may provide brief relief, the absence of a credible diplomatic breakthrough will keep investors firmly focused on geopolitical developments.

He added that oil prices will remain the primary transmission channel into equities, with Brent crude expected to hold above US$100 per barrel, thereby sustaining a cautious and reactive trading environment while influencing inflation expectations, liquidity conditions, and sectoral earnings.

However, he said foreign flows provide a constructive counterbalance. As of Thursday, investors have turned net buyers following the post-Hari Raya reopening, reinforcing Malaysia’s position as a relatively safe haven within emerging markets amid global uncertainty.

“We expect this momentum to continue into next week. Defensive sectors are likely to attract sustained interest, supported by earnings resilience and domestic demand exposure.

“Against this backdrop, we expect the FBM KLCI to remain supported above the psychological 1,700 level, with continued foreign participation and institutional flows helping to cushion downside risks,” he said.

For the week just ended, Bursa Malaysia traded mostly higher, tracking the regional market performance amid the ongoing West Asia conflict.

On a Thursday-to-Friday basis, the FBM KLCI eased 8.06 points to 1,712.65 from 1,720.71 a week earlier.

On the index board, the FBM Top 100 Index declined 51.29 points to 12,337.50, the FBM Emas Index lost 73.54 points to 12,465.26, and the FBM Mid 70 Index slipped 44.19 points to 17,098.79.

The FBM Emas Shariah Index gained 4.89 points to 12,272.19 and the FBM ACE Index tumbled 76.84 points to 4,327.45.

Sector-wise, the Financial Services Index fell 351.62 points to 20,327.50, and the Industrial Products and Services Index edged down 0.27 of-a-point to 182.89, while the Energy Index rose 4.48 points to 798.29. The Plantation Index gained 16.07 points to 8,704.97.

The weekly turnover expanded to 12.24 billion units worth RM13.69 billion against 11.88 billion units worth RM14.56 billion a week earlier.

The Main Market volume improved to 7.64 billion units worth RM12.81 billion against 7.41 billion units worth RM13.74 billion previously.

Warrants turnover increased to 3.54 billion units valued at RM495.25 million from 3.39 billion units valued at RM424.90 million last week.

The ACE Market volume slipped to 1.04 billion units valued at RM376.06 million from 1.07 billion units valued at RM392.27 million in the previous week. — Bernama