Kuala lumpur: Bursa Malaysia is projected to rise further in the coming week, driven by sustained buying interest and an improving overall sentiment.
According to BERNAMA News Agency, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng highlighted that the FTSE Bursa Malaysia KLCI (FBM KLCI) is approaching a significant historical zone. The previous high of 1,721.42 was recorded on February 22, 2019, and the benchmark index recently reached 1,719.99, just below the 1,720 threshold.
Thong Pak Leng indicated that surpassing the 1,720 level would be crucial, as it may signal a new wave of upward momentum, potentially leading to further gains in the broader market. He expects the FBM KLCI to trade between 1,700 and 1,730 next week.
Meanwhile, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan noted that the market is expected to trade in a measured and orderly manner next week. He emphasized that the direction will be influenced more by external macro signals rather than domestic catalysts, with investor focus on the upcoming US Federal Reserve policy decision. Although no immediate policy changes are anticipated, recent US inflation data has met expectations, suggesting easing inflation pressures.
Regionally, attention will also be on China, with the release of December industrial profits data. Mohd Sedek mentioned that the FBM KLCI is likely to close above 1,730 by the end of January, marking its highest monthly close since 2018. In the short term, the index is expected to test the 1,730-1,740 range, with trading activity likely to remain selective amid ongoing macro uncertainties.
Bursa Malaysia experienced a decline earlier this week but rebounded by week's end, supported by positive sentiment regarding the status quo of the Overnight Policy Rate, easing geopolitical tensions, and a strengthening ringgit. Over the week, the FBM KLCI rose by 7.25 points to 1,719.99 from 1,712.74 the previous week.
In terms of indices, the FBM Emas Index increased by 15.51 points, the FBMT 100 Index went up by 19.08 points, and the FBM Emas Shariah Index rose by 6.83 points. However, the FBM 70 Index and the FBM ACE Index experienced declines. By sector, the Financial Services and Plantation Indices saw gains, while the Energy Index decreased.
Weekly turnover fell to 15.10 billion units worth RM15.66 billion, with the Main Market volume dropping to 8.15 billion units worth RM14.27 billion. Warrants turnover also decreased, while the ACE Market volume saw a slight increase.