Bursa Malaysia set for range-bound trade next week as investors eye global cues

KUALA LUMPUR, April 25 — Bursa Malaysia’s key index is likely to move sideways within the 1,700–1,730 range next week, said Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng.

He expects the FTSE Bursa Malaysia KLCI (FBM KLCI) to move sideways with a slight upside bias, supported by continued bargain hunting and improving sentiment.

“While downside risks appear contained for now, sustained gains will depend on clearer external direction, particularly developments in geopolitical tensions and global market cues,” he told Bernama.

Meanwhile, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said focus is now shifting to the upcoming United States Federal Open Market Committee (FOMC) meeting on April 28–29, whereby its interest rate policy is expected to remain unchanged at 3.50 to 3.75 per cent.

“This comes alongside guidance reinforcing a higher-for-longer stance amid sticky inflation.

“In parallel, the US earnings season has provided some support, with early releases indicating the S&P 500 remains on track for another quarter of robust earnings growth,” he said.

Mohd Sedek said while this supports near-term risk sentiment, it may not be sufficient to fully offset risks stemming from geopolitical tensions and energy price volatility.

“A shortened trading week due to the Labour Day holiday is also likely to reduce market liquidity.

“Taken together, we maintain the view that market resilience remains fragile, with the FBM KLCI likely to stay in a consolidation phase amid an increasingly complex external environment,” he said.

For the week just ended, Bursa Malaysia traded mostly higher.

On a Friday-to-Friday basis, the FBM KLCI rose 25.13 points to 1,720.34 from 1,695.21 a week earlier.

On the index board, the FBM Top 100 Index gained 198.09 points to 12,549.30, the FBM Emas Index advanced 197.55 points to 12,715.72, the FBM Emas Shariah Index rose 138.55 points to 12,586.61, the FBM ACE Index improved 52.67 points to 4,652.32, while the FBM Mid 70 Index climbed 348.70 points to 18,072.43.

By sector, the Financial Services Index surged 408.14 points to 20,222.81, the Industrial Products and Services Index added 4.32 points to 192.36, and the Energy Index increased 14.54 points to 830.31, while the Plantation Index declined 83.40 points to 8,845.26.

Weekly turnover edged up to 16.39 billion units valued at RM15.16 billion from 16.35 billion units valued at RM14.87 billion a week earlier.

The Main Market volume expanded to 9.33 billion units valued at RM13.66 billion from 8.97 billion units valued at RM13.41 billion previously.

Warrants turnover increased to 5.00 billion units valued at RM681.05 million compared with 4.58 billion units valued at RM585.74 million last week.

The ACE Market volume slid to 2.06 billion units valued at RM812.78 million from 2.80 billion units valued at RM873.03 million in the previous week. — Bernama