Kuala lumpur: The Bursa Malaysia key index is poised to trade with an upward bias next week, bolstered by improving global risk sentiment due to signs of easing geopolitical tensions.

According to BERNAMA News Agency, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan indicated that markets might begin to exhibit what is termed the 'all-time high syndrome'. This syndrome is driven by concerns of an imminent correction, often leading to premature profit-taking or delayed risk deployment, which can cap upside momentum despite supportive fundamentals. Mohd Sedek noted that while global sentiment has improved, cross-border capital flows are expected to remain selective rather than broad-based.

Domestically, Mohd Sedek observed early signs of market improvement, with the FBMKLCI largely range-bound. The sustained uptrend in the FBM70 and small-cap indices over the past week suggests a broadening of market participation and a tentative return of risk appetite. He added that as the market strengthens and visibility improves, liquidity is anticipated to rotate back into large-cap names, providing a more durable foundation for the FBMKLCI to break out of its current range.

For the week just ended, Bursa Malaysia traded mostly higher, aligning with regional peers. On a Friday-to-Friday basis, the FBM KLCI rose 3.90 points to 1,695.21 from 1,691.31 a week earlier. The index board showed gains across various indices, including the FBM Top 100, FBM Emas, and FBM Emas Shariah indices. Sector-wise, the Financial Services Index, Industrial Products and Services Index, and Energy Index recorded improvements, while the Plantation Index saw a slight decline.

The weekly turnover increased to 16.35 billion units worth RM14.87 billion, compared to 15.14 billion units worth RM14.39 billion the previous week. The Main Market volume decreased slightly, while warrants turnover and the ACE Market volume saw significant increases, indicating a shift in investor focus and market dynamics.