Kuala lumpur: Bursa Malaysia is expected to remain volatile next week, if the United States (US) federal government shutdown persists, said an analyst.
According to BERNAMA News Agency, IPPFA Sdn Bhd’s director of investment strategy and country economist, Mohd Sedek Jantan, noted that each week of the US government closure could potentially reduce the fourth quarter’s gross domestic product growth by 0.1 percentage points, equivalent to approximately US$7 billion. This situation heightens the risk that a prolonged standoff could weaken confidence.
Simultaneously, domestic focus will shift to Budget 2026, which is set to be presented by Prime Minister Datuk Seri Anwar Ibrahim next Friday. As the first budget under the 13th Malaysia Plan, it is anticipated to outline the government’s fiscal direction, prioritizing subsidy rationalisation, social protection, and infrastructure spending. The consumer, tourism, and construction sectors are likely to benefit, aligning with the government’s medium-term growth agenda.
Mohd Sedek noted that despite global risks potentially causing volatility, Bursa Malaysia is expected to consolidate with a downward bias leading up to the budget. Profit-taking is anticipated to persist, especially as technology counters have already factored in optimism regarding potential US Federal Reserve interest rate cuts. He mentioned that investors are expected to remain selective, positioning cautiously ahead of fiscal announcements that will influence sentiment into the year-end.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng shared that the overall outlook remains positive as long as the benchmark stays above 1,620, which could pave the way for a move towards 1,650. He remarked that any consolidation should be regarded as a healthy pause, with 1,600 serving as the critical line of defense. Thong anticipates the FBM KLCI to trend within the range of 1,620-1,650 for the upcoming week.
On a Friday-to-Friday basis, the FBM KLCI advanced 26.01 points to 1,635.06 from last week’s 1,609.05. The FBM Emas Index increased by 188.23 points to 12,181.67, the FBMT 100 Index rose 183.92 points to 11,908.96, and the FBM Emas Shariah Index climbed 145.26 points to 12,193.73. The FBM ACE Index surged 146.66 points to 5,347.12, while the FBM 70 Index leapt 239.85 points to 17,090.20.
By sector, the Plantation Index gained 33.99 points to 7,796.64, and the Industrial Products and Services Index edged up 0.59 of a point to 174.35. The Financial Services Index soared 445.56 points to 18,602.40, while the Energy Index firmed 5.14 points to 787.66.
Weekly turnover increased to 18.04 billion units worth RM14.55 billion, compared with 17.03 billion units valued at RM13.37 billion in the previous week. The Main Market volume rose to 10.07 billion units worth RM12.85 billion from 8.80 billion units valued at RM11.55 billion previously. Warrant turnover narrowed to 4.70 billion units valued at RM694.53 million, versus 5.45 billion units worth RM826.39 million in the preceding week. The ACE Market volume advanced to 3.25 billion units valued at RM998.20 million, compared with 1.52 billion units worth RM610.19 million previously.