Kuala lumpur: Bursa Malaysia is expected to trade with a positive bias next week, supported by resilient domestic fundamentals and improving regional sentiment. IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan highlighted that Malaysia's manufacturing Purchasing Managers' Index (PMI) remains above the 50-point expansion threshold. Additionally, stronger US Institute for Supply Management (ISM) Services data for August indicates continued momentum in global activity and demand.
According to BERNAMA News Agency, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng commented on the market's outlook, suggesting that Bursa Malaysia is likely to remain in consolidation mode as investors evaluate developments in West Asia and crude oil prices, along with their potential impact on global inflation. Thong pointed out that foreign institutions were net sellers this week, while local institutions and retail investors absorbed the selling.
From a technical standpoint, Thong noted that the 1,700 level is an important psychological support, while the 1,720 level is expected to provide near-term resistance. With neither domestic nor external factors providing a strong catalyst for a decisive breakout, the benchmark index is anticipated to trade within the 1,700-1,730 range next week.
This week, Bank Negara Malaysia's Monetary Policy Committee maintained the Overnight Policy Rate (OPR) at 2.75 percent. The central bank reported indicators pointing to resilient global growth, supported by strong global tech expansion, improving supply conditions, and stable labor markets. It also noted that inflation has decreased in recent months but is expected to remain elevated due to the delayed pass-through of energy costs to consumer prices.
On a weekly basis, the FTSE Bursa Malaysia KLCI (FBM KLCI) fell 17.78 points to 1,708.10 from 1,725.88 the previous week. Other indices also experienced declines, with the FBM Emas Index falling 139.18 points to 12,625.45, and the FBM Top 100 Index losing 145.59 points to 12,429.26. The FBM Emas Shariah Index, FBM ACE Index, and FBM Mid 70 Index also recorded losses.
Sector-wise, the Energy Index advanced 27.24 points to 805.62, and the Plantation Index gained 28.26 points to 9,337.92. Conversely, the Industrial Products and Services Index and the Financial Services Index saw declines.
The weekly turnover increased to 17.97 billion units worth RM14.14 billion, up from 16.70 billion units worth RM17.24 billion the prior week. The Main Market volume rose significantly to 12.00 billion units valued at RM12.85 billion, while warrants turnover and the ACE Market volume decreased.