Kuala Lumpur: Bursa Malaysia is anticipated to exhibit caution in trading next week, influenced by the upcoming Chinese New Year festivities and the imminent US Federal Open Market Committee (FOMC) meeting slated for January 28-29.
According to BERNAMA News Agency, UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research, Mohd Sedek Jantan, noted that demand is likely to be subdued next week due to the Chinese New Year celebrations. “Next week, the FBM KLCI is expected to take a cautious stance as investors await the FOMC meeting outcome. The shortened trading week, due to the Chinese New Year holiday, will likely dampen market activity, with muted volumes and limited movements anticipated,” he stated.
Mohd Sedek further highlighted that as China enters the Lunar New Year holiday period, most key data releases are scheduled for Monday, including the manufacturing PMI and medium-term lending facility figures. In the US, the core Personal Consumption Expenditures data, set for release on January 31, will be closely monitored.
While President Trump’s policies are perceived as supportive of global sentiment, Malaysia’s economy is expected to benefit from strong domestic fundamentals, continued demand from China, and improving global liquidity conditions.
On a Friday-to-Friday basis, the FBM KLCI advanced by 7.01 points to 1,573.73 from 1,566.72 a week earlier. The FBM Emas Index increased by 26.76 points to 12,035.59, the FBMT 100 Index rose by 29.55 points to 11,725.52, and the FBM Emas Shariah Index added 49.22 points to 11,914.88. Conversely, the FBM ACE Index gained 34.27 points to 5,210.53, while the FBM 70 Index decreased by 39.53 points to 17,906.35.
Sector-wise, the Financial Services Index strengthened by 87.62 points to 18,896.49, the Plantation Index added 83.01 points to 7,419.45, and the Industrial Products and Services Index increased by 2.04 points to 168.69. However, the Energy Index slipped by 2.49 points to 838.06, the Healthcare Index decreased by 8.81 points to 2,183.17, and the Technology Index edged down by 0.64 points to 60.10.
Overall turnover decreased to 15.58 billion units worth RM13.10 billion this week, compared to 16.31 billion units worth RM14.50 billion in the preceding week. The Main Market volume fell to 6.76 billion units valued at RM10.97 billion, compared with 8.41 billion units valued at RM13.19 billion previously. Warrant turnover dropped to 5.18 billion units worth RM531.09 million from 5.24 billion units worth RM497.54 million the week before, while the ACE Market volume soared to 3.62 billion units valued at RM1.59 billion from 2.55 billion units valued at RM811.14 million previously.