KUALA LUMPUR: Bursa Malaysia is anticipated to sustain its recovery momentum in the forthcoming week, with the FBM KLCI projected to fluctuate between 1,600 and 1,610, according to UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan. He noted that bargain hunting is likely to bolster the market.
According to BERNAMA News Agency, Mohd Sedek observed that although the index briefly dipped into negative territory this week, breaching the critical 1,600 psychological level, a rebound appears likely. Bargain hunters are expected to capitalize on opportunities following the conclusion of the earnings season, and the overall market sentiment remains generally supportive.
Mohd Sedek mentioned that the upward momentum in US indices suggests continued bullishness, potentially influencing regional markets, including Malaysia. He attributed the week’s downtrend to the US Thanksgiving holiday, which resulted in reduced market participation, and the shortened trading hours on Friday that could prov
ide limited leads for the upcoming Monday.
He further remarked that while low trading volumes might have exaggerated the decline, the overall trend remains relatively stable. This stability suggests that, although caution is advised, the FBM KLCI could stabilize in the near term, albeit within a constrained range.
Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng also predicts that the FBM KLCI will remain in consolidation mode, trading sideways between 1,590 and 1,610 next week, as market participants await fresh developments. Looking forward, a key report to monitor is the S and P Global Malaysia Manufacturing Purchasing Managers’ Index (PMI), due for release on Monday.
The October PMI held steady at 49.5, while November data indicated further improvements, driven by increased optimism among domestic businesses, as highlighted by the Malaysian Institute of Economic Research (MIER) Business Conditions Survey, providing additional support for local equities. MIER recently suggested that t
he business outlook for the fourth quarter of 2024 remained positive, with the Business Confidence Index (BCI) nearing 105 points.
On a Friday-to-Friday basis, the FBM KLCI rose 4.51 points to 1,594.29 from 1,589.78 in the preceding week. The index was unable to maintain the crucial 1,600 level breached on Tuesday amidst concerns regarding Donald Trump’s tariff threat and Fed interest rate prospects.
The FBM Emas Index increased by 20.14 points to 12,131.13, and the FBMT 100 Index climbed 9.36 points to 11,823.79. Conversely, the FBM 70 Index fell 74.20 points to 17,859.82, the FBM Emas Shariah Index dropped 90.82 points to 12,034.69, and the FBM ACE Index was 31.42 points lower at 5,131.65.
By sector, the Financial Services Index surged 152.96 points to 19,190.03, and the Healthcare Index advanced 33.38 points to 2,169.49. Meanwhile, the Plantation Index reduced by 6.70 points to 7,531.82, the Technology Index decreased by 0.68 of-a-point to 58.48, the Energy Index lost 7.83 points to 812.29, and the Indu
strial Products and Services Index diminished by 2.99 points to 170.29.
Turnover increased to 14.92 billion units worth RM16.82 billion, compared to 14.54 billion units worth RM11.54 billion in the previous week. The Main Market volume appreciated to 8.40 billion shares valued at RM15.63 billion from 7.33 billion shares valued at RM10.30 billion last week. However, warrant turnover decreased to 4.18 billion units worth RM440.95 million, compared to 4.63 billion units worth RM566.18 million previously. The ACE Market volume dropped to 2.38 billion shares valued at RM746.89 million versus 2.57 billion shares valued at RM669.94 million last week.