Kuala lumpur: Bursa Malaysia is set to experience a constructive upward bias in trading next week, with expectations to trade within the 1,730-1,760 range, and immediate support identified around the 1,700 level.
According to BERNAMA News Agency, Mohd Sedek Jantan, director of investment strategy and country economist at IPPFA Sdn Bhd, highlighted that the level of 1,760 represents near-term technical resistance, where short-term profit-taking might occur. He further noted that surpassing the 1,780 mark would require sustained momentum and follow-through buying. The FBM KLCI enters the forthcoming week with a constructive technical bias, being supported by its position above the 50-, 100-, and 200-day moving averages.
Investors are keenly awaiting Malaysia's Purchasing Managers' Index (PMI) figures, due on Monday. The upcoming PMI will be scrutinized for indications of sustained domestic demand strength, particularly in consumer- and services-related sectors. Any improvement in the PMI reading could bolster broader market sentiment beyond the banking sector, reinforcing the underlying structure of the current rally.
Rakuten Trade Sdn Bhd's vice-president of equity research, Thong Pak Leng, mentioned that the FBM KLCI remains in a healthy uptrend despite potential intermittent profit-taking following the recent rally. He asserted that a sustained move above the 1,750 level could pave the way for further gains, with expected pullbacks being orderly and corrective rather than trend-changing. Thong anticipates the index will trend within the 1,730-1,760 range next week.
The local market saw gains at the start of the week, underwent profit-taking midweek, and rebounded by week's end due to renewed buying interest. Bursa Malaysia surpassed its highest level in over seven years on Tuesday, reaching 1,771.25, driven by strong buying interest in blue-chip stocks from both local and foreign investors. This marked a peak beyond the previous high of 1,740.59 on October 17, 2018.
Additionally, the strengthening ringgit has positively impacted overall market sentiment, with the currency rebounding to 3.9175 against the US dollar on Wednesday, its strongest closing since April 2018. Year-on-year, the ringgit has appreciated by 10.77% against the dollar.
By Friday's close, the FTSE Bursa Malaysia KLCI (FBM KLCI) had risen by 24.08 points or 1.40% to 1,744.07 from the previous Friday's close of 1,719.99. On a weekly basis, the FBM KLCI rose by 20.89 points to 1,740.88. The FBM Top 100 Index and FBM Emas Index also saw increases, while the FBM Mid 70 Index, FBM Emas Shariah Index, and FBM ACE Index experienced declines.
Sector-wise, the Financial Services Index surged, while the Energy Index, Plantation Index, and Industrial Products and Services Index saw reductions. Weekly turnover advanced to 16.53 billion units worth RM20.33 billion from 15.10 billion units worth RM15.66 billion the previous week. The Main Market volume increased significantly, while the ACE Market volume narrowed compared to the previous week.