Kuala lumpur: Bursa Malaysia is anticipated to trade with a slight upside bias next week as investors continue to assess a blend of external geopolitical developments, robust domestic macroeconomic conditions, and pivotal earnings catalysts from the US technology sector.
According to BERNAMA News Agency, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan noted that while market sentiment remained relatively positive this week, investors are expected to remain highly sensitive to developments from the recent engagement between US President Donald Trump and Chinese President Xi Jinping. This sensitivity persists particularly after the discussions failed to yield a formal trade agreement or concrete policy breakthrough.
Mohd Sedek Jantan emphasized that the absence of a definitive trade framework leaves markets open to headline-driven volatility. This is especially relevant given Trump's tendency to make market-moving statements post overseas visits rather than during the meetings themselves. Any renewed rhetoric on tariffs, technology restrictions, or China-related trade policies could quickly impact regional risk appetite, including sentiment towards Malaysian equities.
Domestically, Malaysia's stronger-than-expected first quarter (1Q 2026) GDP performance has bolstered confidence in the resilience of the domestic economy. This resilience is supported by firm private consumption, stable labor market conditions, and continued household spending momentum. Mohd Sedek highlighted that the recent growth figures signify that domestic demand is a crucial stabilizing factor for the economy, despite ongoing external uncertainties.
He further added that the stronger GDP print does not entirely shield Malaysia from rising global risks, particularly geopolitical tensions in major economies and the recent rebound in global crude oil prices. Both factors could potentially influence inflation expectations, fiscal dynamics, and external trade sentiment.
On Friday, Bank Negara Malaysia (BNM) announced that Malaysia's economy expanded by 5.4 percent in 1Q 2026, slightly exceeding the advance estimate of 5.3 percent. However, the growth pace eased from the 6.2 percent recorded in 4Q 2025. The central bank attributed the 5.4 percent growth primarily to domestic demand.
For the week just concluded, Bursa Malaysia traded mostly lower, in tandem with the weaker regional market sentiment. Investors adopted a cautious approach amid renewed concerns over rising global oil prices and potential inflationary effects across major economies. On a weekly basis, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 7.84 points to 1,740.22 from 1,748.06 a week earlier.
On the index board, the FBM Emas Index decreased 35.36 points to 12,894.87, the FBMT 100 Index fell by 39.22 points to 12,733.31, the FBM Emas Shariah Index slipped 15.46 points to 12,822.85, and the FBM Mid 70 Index increased 20.79 points to 18,505.01, while the FBM ACE Index jumped 131.42 points to 4,742.74.
By sector, the Plantation Index tumbled 252.98 points to 8,585.43, the Energy Index slid by 3.42 points to 808.89, and the Financial Services Index shaved 119.50 points to 20,254.31. Meanwhile, the Industrial Products and Services Index inched up 5.30 points to 199.95.
Weekly turnover expanded to 21.10 billion units valued at RM16.89 billion from 16.99 billion units valued at RM16.37 billion a week earlier. The Main Market volume rose to 11.53 billion units valued at RM14.79 billion from 9.54 billion units valued at RM9.54 billion previously. Warrants turnover swelled to 5.86 billion units valued at RM811.42 million compared with 5.43 billion units valued at RM752.02 million last week. The ACE Market volume strengthened to 3.69 billion units valued at RM1.28 billion from 2.02 billion units valued at RM675.81 million in the previous week.