Kuala Lumpur: Bursa Malaysia is poised to trend higher next week as market sentiment improves and interest renews in fundamentally strong stocks. UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan noted that while the index is expected to trend upwards, it faces a significant resistance level at 1,590, which could cap immediate gains, especially with the ongoing outflow of foreign funds.
According to BERNAMA News Agency, Mohd Sedek expressed a cautiously optimistic outlook for the coming week despite prevailing market uncertainties. He pointed out that bargain-hunting opportunities have emerged in resilient sectors such as financials, commodities, energy, healthcare, and technology. Malaysia’s semiconductor industry is anticipated to benefit from China’s strategic focus on technology as outlined in its 2025 economic roadmap.
Mohd Sedek highlighted the risk of near-term volatility due to unpredictable US trade policies. However, he mentioned that the temporary suspension of tariffs and potential shifts in Federal Reserve policy could create a more favorable environment for risk assets. With these factors in consideration, a stabilization in market conditions is anticipated, supporting an uptrend in the FTSE Bursa Malaysia KLCI (FBM KLCI) and a stronger ringgit in the following week.
For the trading week that just concluded, the FBM KLCI experienced a decline due to concerns over trade wars, following the US’ confirmation of tariff impositions on Mexico, Canada, and China. On a Friday-to-Friday basis, the key index decreased by 27.43 points to 1,547.27 from 1,574.70 the previous week.
Other indices also saw declines, with the FBM Emas Index down by 215.52 points to 11,520.80, the FBMT 100 Index falling by 201.02 points to 11,295.55, and the FBM Emas Shariah Index dropping 231.84 points to 11,179.95. The FBM 70 Index lost 294.16 points to 16,342.47, and the FBM ACE Index slid 169.20 points to 4,587.79.
Sector-wise, the Industrial Products and Services Index edged down by 3.12 points to 155.23, the Energy Index trimmed 39.10 points to 715.04, the Financial Services Index decreased by 260.27 points to 19,066.68, and the Plantation Index was 129.62 points lower at 7,480.08.
Turnover reduced to 15.56 billion units valued at RM13.32 billion, compared to 15.94 billion units valued at RM16.35 billion in the prior week. The Main Market volume declined to 8.40 billion units worth RM12.10 billion from 9.44 billion units worth RM15.14 billion previously. Warrants turnover increased to 5.14 billion units valued at RM570.74 million compared to 4.46 billion units valued at RM527.65 million last week. The ACE Market volume decreased slightly to 2.0 billion units worth RM647.06 million from 2.02 billion units worth RM684.24 million in the previous week.