Kuala Lumpur: The FTSE Bursa Malaysia KLCI (FBM KLCI) is poised to continue its upward trajectory in the upcoming week, buoyed by a rebound on Friday after a four-day sell-off, as per an analyst's insights. UOB Kay Hian Wealth Advisors Sdn Bhd's head of investment research, Mohd Sedek Jantan, indicates that ongoing bargain hunting is likely to bolster the index's recovery.
According to BERNAMA News Agency, the FBM KLCI has seen a year-to-date decline of 4.60 percent or 75.61 points as of January 17, which presents an opportune moment for investors to accumulate blue-chip stocks. The United States earnings season is anticipated to play a pivotal role in influencing investor sentiment, Mohd Sedek noted, while reaffirming Malaysia's solid economic fundamentals despite market volatility.
The Department of Statistics Malaysia projects a GDP growth of 4.8 percent for the fourth quarter of 2024, culminating in a full-year growth of 5.1 percent. This underscores the resilience of Malaysia's economy amidst a challenging global environment, as emphasized by Mohd Sedek.
Additionally, China's 2024 GDP figures indicate growth acceleration from 4.6 percent in the third quarter to 5.4 percent in the fourth quarter, achieving a full-year growth rate of 5.0 percent. China's robust performance, driven by heightened external demand, is favorable for Malaysia due to strong trade links and potential advantages for its export-driven sectors. Retail sales in China have also shown positive recovery signs, bolstering regional demand and improving prospects for Malaysian exports.
Global focus will pivot to US President-elect Donald Trump's inauguration on Monday, which may reignite interest in sectors such as technology, small-cap stocks, and cryptocurrencies. Investors are optimistic about pro-growth policies, including tariffs and potential tax cuts. However, with US markets closed for Martin Luther King Jr Day, Asian markets will lead the reaction to the inauguration, guided by Wall Street's previous session performance.
On a weekly basis, the FBM KLCI fell by 35.69 points to 1,566.72 from 1,602.41 the previous week. The FBM Emas Index, FBMT 100 Index, and FBM Emas Shariah Index also saw declines, while the Energy Index rose by 7.25 points to 840.55. Turnover decreased to 16.31 billion units worth RM14.50 billion from 16.98 billion units worth RM14.37 billion the prior week, with reductions noted in the Main Market volume, Warrants turnover, and ACE Market volume.