Kuala Lumpur: Bursa Malaysia is expected to experience volatile trading next week as it awaits significant market developments. The FTSE Bursa Malaysia KLCI (FBM KLCI) is projected to fluctuate within a range of 1,500 to 1,530, with investors maintaining a cautious stance.
According to BERNAMA News Agency, Rakuten Trade Sdn Bhd’s equity research vice-president, Thong Pak Leng, noted that the market sentiment is likely to remain subdued. He highlighted that the FBM KLCI is currently in a correction phase, trading below its key moving averages, with technical indicators suggesting short-term weakness. However, Thong mentioned that the index could potentially recover if macroeconomic pressures ease and regional sentiment improves. A clear break above the 1,535 level could signal a shift towards bullish momentum.
Mohd Sedek Jantan, head of investment research at UOB Kay Hian Wealth Advisors Sdn Bhd, pointed out that the FBM KLCI is expected to trade within a narrow range in the absence of clear catalysts. He indicated that should the index fall below the 1,500 level, it may prompt bargain hunting, particularly in undervalued large-cap stocks. Mohd Sedek also mentioned that volatility might increase due to several external factors, such as South Korea’s presidential election and various economic data releases from Asian countries.
Bursa Malaysia will see a shortened four-day trading week next week due to a long weekend, which could result in thinner trading volumes and increased market volatility. Mohd Sedek advised investors to remain vigilant, maintain diversified portfolios, and prepare for intermittent volatility as uncertainty continues to influence the investment landscape.
Adding to the uncertainty, a US appeals court has stayed a previous ruling that blocked President Donald Trump’s use of reciprocal tariffs under the 1977 International Emergency Economic Powers Act. This decision has raised questions about the future direction of US trade enforcement.
Bursa Malaysia Bhd and its subsidiaries will be closed on June 2, 2025, in conjunction with the official birthday of His Majesty Sultan Ibrahim, King of Malaysia. The exchange and its subsidiaries will resume operations on June 3, 2025.
For the week just ended, Bursa Malaysia experienced a downturn, retreating from earlier gains and ending lower on Friday due to continued selling pressure in heavyweight and mid-cap stocks. This was amid downbeat regional sentiment following uncertainties surrounding US trade policy. The barometer index fell by 27.03 points to 1,508.35 from 1,535.38 a week earlier.
Additionally, turnover increased to 14.80 billion units valued at RM12.78 billion from 14.05 billion units valued at RM11.28 billion in the preceding week. The Main Market volume rose to 7.21 billion units worth RM11.50 billion, while warrants turnover expanded to 5.90 billion units worth RM721.75 million. Conversely, the ACE Market volume decreased to 1.66 billion units valued at RM543.90 million.