Accra:Bursa Malaysia The market is anticipated to trade within the 1,600-1,630 points range next week, with a cautious upside bias due to selective accumulation of blue chips.
According to BERNAMA News Agency, Rakuten Trade Sdn Bhd vice-president of equity research, Thong Pak Leng, noted that while valuations are becoming more attractive, fragile investor sentiment could temper buying interest. He expects selective bargain hunting to support a gradual recovery, although geopolitical uncertainties, elevated energy prices, and volatile bond yields could limit the upside.
The trading week that ended recently saw Bursa Malaysia trade mostly higher, supported by improved investor sentiment. The market ended the week on a positive note, buoyed by optimism and sustained buying activity following the announcement of Budget 2027, which provided fresh catalysts. The federal government allocated RM459.8 billion for the budget, a 3.6 percent increase from the revised 2026 allocation, accounting for 19.8 percent of GDP. Operating expenditure is set at RM376.8 billion, with RM83 billion allocated for development expenditure.
Prime Minister Datuk Seri Anwar Ibrahim announced a RM100 million Strategic Investment Fund established by Khazanah Nasional Bhd and InvestPenang to aid semiconductor and advanced manufacturing companies in their early growth stages. IPPFA Sdn Bhd director Mohd Sedek Jantan projected a GDP growth of 4.9 percent in 2027, within the official range of 4.2 percent to 5.2 percent, emphasizing the importance of private consumption and investment for sustaining growth.
RHB Investment Bank Bhd (RHB IB) highlighted that investment growth in 2027 will be driven by higher development expenditure, with significant allocations towards transportation, education, healthcare, and trade. The construction sector is expected to benefit from major infrastructure projects such as the East Coast Rail Link and Light Rail Transit Line 3 Phase 2. The services sector is also predicted to be a key growth contributor, supported by resilient private consumption and increased tourist arrivals.
Concerns remain around external uncertainties, such as geopolitical tensions and developments in U.S. tariff policy, which could impact export demand and investment decisions. However, Malaysia's diversified economic base and supportive domestic policies should offer some resilience against these challenges.
On a Friday-to-Friday basis, the FTSE Bursa Malaysia KLCI dropped 22.42 points to 1,608.45. The FBM Emas Index fell 71.74 points, while the FBM Top 100 Index lost 86.28 points. Conversely, the FBM Emas Shariah Index and the FBM ACE Index rose, with the latter gaining 125.11 points. Weekly turnover advanced significantly, with Main Market volume and Warrants turnover both showing increased activity.