Kuala Lumpur: Bursa Malaysia is expected to maintain a cautious outlook next week, consolidating within a tight range of 1,513 to 1,515, as investors await clarity on Malaysia’s strategic response to the recent US tariff announcements, from a special Dewan Rakyat sitting on May 5.
According to BERNAMA News Agency, UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan stated that the cautious tone may be compounded by a shortened trading week, with Bursa Malaysia closed on Thursday in observance of Labour Day, potentially weighing on liquidity and limiting upward momentum. Despite recent gains, the FBM KLCI has struggled to decisively breach the psychological resistance level at 1,515, introducing uncertainty regarding the sustainability of the current uptrend.
Mohd Sedek noted that after three consecutive days of gains, profit-taking may intensify, particularly among retail investors seeking to lock in short-term gains amid ongoing policy uncertainties. While the absence of foreign selling is encouraging, confirmation of sustained inflows pending Friday’s foreign investors’ data would be a constructive signal and may support positive momentum into early May. Export-oriented counters remain well-positioned to outperform, provided there is no further escalation in US trade policy.
Nonetheless, Mohd Sedek emphasized that sentiment remains fragile and highly sensitive to geopolitical developments. Investors should continue to monitor external headlines closely, as abrupt policy shifts could derail the nascent recovery.
Regarding the positive market sentiment following the meeting between Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz and US officials in Washington, along with the easing of US-China trade tensions, Mohd Sedek remarked that these developments have come at the right time. Export-oriented stocks began rising after midday, contributing to the upward movement of the FBM KLCI, which climbed up at 3.30 pm on Friday amid choppy trading.
Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng believes investors are ready to buy the breakout at around 1,518, add to their positions, or use leveraged tools to maximize profits as the benchmark index shows signs of recovery after reclaiming the 20-day exponential moving average (EMA). The gap between the 20-day and 50-day EMA is narrowing, hinting at a potential convergence that could develop into a bullish crossover if momentum continues.
On a Friday-to-Friday basis, the key index gained 9.80 points to 1,509.20 from 1,499.40 a week earlier. The FBM Emas Index advanced 98.34 points to 11,219.84, the FBMT 100 Index improved by 85.19 points to 10,989.92, and the FBM Emas Shariah Index strengthened by 174.13 points to 11,084.26. The FBM 70 Index jumped 177.47 points to 15,791.10, and the FBM ACE Index rose 48.19 points to 4,623.57.
By sector, the Industrial Products and Services Index added 3.65 points to 148.73, the Energy Index expanded 8.81 points to 674.68, but the Financial Services Index went down 42.33 points to 17,991.19, the Plantation Index depreciated 1.46 points to 7,224.92, and the Healthcare Index eased 0.70 of-a-point to 1,869.15.
Turnover strengthened to 14.14 billion units valued at RM9.03 billion from 13.43 billion units valued at RM8.48 billion in the preceding week. The Main Market volume gained to 6.62 billion units worth RM7.90 billion, compared with 6.30 billion units worth RM7.33 billion previously. Warrants turnover increased to 5.77 billion units worth RM571.23 million from 5.53 billion units worth RM638.12 million in the prior week. The ACE Market volume rose to 1.73 billion units valued at RM547.26 million, from 1.59 billion units valued at RM504.28 million previously.