Kuala lumpur: Bursa Malaysia's benchmark index is on the verge of retesting the 1,700 level, with expectations of consolidating within the 1,710-1,715 range in the coming week, driven by an improved risk appetite and appealing valuations in select Malaysian blue chip stocks.
According to BERNAMA News Agency, Mohd Sedek Jantan, director of investment strategy and country economist at IPPFA Sdn Bhd, noted that the recent rebound in the FTSE Bursa Malaysia KLCI (FBM KLCI) during the last two trading sessions of the week indicates that near-term market sentiment may be stabilizing after the persistent weakness observed in May. He pointed out that as the enthusiasm surrounding the artificial intelligence-driven rally begins to cool, investors might shift focus toward defensive sectors and undervalued large-cap stocks outside the US market.
Mohd Sedek further mentioned that stronger US economic data could continue to bolster global risk appetite, but high valuations in US equities might prompt investors to explore opportunities in emerging markets where valuations remain relatively appealing. He emphasized that Malaysia could benefit from such a reallocation of capital flows.
Thong Pak Leng, vice-president of equity research at Rakuten Trade Sdn Bhd, expressed cautious optimism, highlighting that buying interest in blue chip stocks is supported by their attractive valuations. He cautioned, however, that the uncertainty surrounding the US-Iran conflict remains a significant concern, with recent hostilities hampering progress towards a comprehensive peace agreement. Thong added that while bargain hunting may support the local market, investors are likely to remain selective due to ongoing geopolitical risks and uncertainty about the global economic outlook.
In the shortened trading week, Bursa Malaysia ended mostly higher, bolstered by bargain-hunting activities and positive sentiment following Prime Minister Datuk Seri Anwar Ibrahim's reassurance of no imminent snap general election and the government's commitment to maintaining national stability and driving economic recovery. The local bourse was closed on June 1 and June 2 in observance of the King's Birthday and the replacement holiday for Wesak Day.
Over the week, the barometer index climbed 10.36 points to 1,693.43 from 1,683.07 the previous week. On the index board, the FBM Emas Index rose by 21.94 points to 12,602.06, and the FBMT 100 Index increased by 24.36 points to 12,441.90. Meanwhile, the FBM Emas Shariah Index fell by 33.92 points to 12,570.15, the FBM Mid 70 Index dropped 184.73 points to 18,299.60, and the FBM ACE Index decreased by 30.57 points to 4,733.24.
Sector-wise, the Plantation Index increased by 172.0 points to 8,671.54, the Energy Index gained 17.45 points to 796.20, the Financial Services Index expanded by 260.02 points to 19,784.31, and the Industrial Products and Services Index edged up by 0.92 of a point to 198.74. Weekly turnover amounted to 10.73 billion units valued at RM11.32 billion, down from 14.77 billion units valued at RM21.55 billion the previous week.
The Main Market volume narrowed to 6.10 billion units valued at RM10.31 billion from 9.13 billion units valued at RM20.32 billion previously. Warrants turnover declined to 2.97 billion units valued at RM406.42 million compared with 3.38 billion units valued at RM422.21 million last week. The ACE Market volume fell to 1.65 billion units valued at RM600.11 million from 2.25 billion units valued at RM801.54 million the week before.