Kuala lumpur: Bursa Malaysia is projected to trade with an upward bias next week as investors evaluate external geopolitical developments alongside Malaysia's resilient domestic economic conditions, according to an analyst. Rakuten Trade Sdn Bhd's vice-president of equity research, Thong Pak Leng, noted that Malaysia's stable interest rate environment, robust domestic demand, and ongoing infrastructure investments are likely to bolster investor sentiment.
According to BERNAMA News Agency, Thong highlighted that while geopolitical developments and rising oil prices may maintain elevated volatility, bargain hunting is anticipated to occur during market weaknesses. Thong expressed expectations that the FTSE Bursa Malaysia KLCI (FBM KLCI) will consolidate with an upward bias, moving within the 1,720-1,750 range in the upcoming week.
Meanwhile, IPPFA Sdn Bhd's director of investment strategy and country economist, Mohd Sedek Jantan, commented that the FBM KLCI's performance will remain influenced by external factors. Investors are expected to closely monitor the US July non-farm payrolls report for insights on the US Federal Reserve's policy direction. Mohd Sedek explained that a jobs report aligning with or below market expectations could strengthen expectations of a September rate cut, enhancing global risk appetite, foreign fund inflows, and Malaysian equities.
Conversely, Mohd Sedek warned that a stronger-than-expected US labour market could drive US Treasury yields and the US dollar higher, potentially triggering profit-taking across regional markets, including Bursa Malaysia. He anticipates elevated market volatility in the upcoming week as investors navigate the US labour market report, China's macroeconomic releases, and evolving geopolitical developments in West Asia.
On a weekly basis, the FBM KLCI rose by 10.85 points to 1,735.75 from 1,724.90. In parallel, the FBM Emas Index increased by 82.46 points to 12,834.25, and the FBM Top 100 Index gained 75.09 points to 12,660.20. The FBM Emas Shariah Index garnered 66.94 points to 12,663.23, while the FBM Mid 70 Index strengthened by 90.73 points to 18,226.52. The FBM ACE Index soared by 105.27 points to 5,079.95.
By sector, the Financial Services Index added 88.89 points to 20,416.53, and the Plantation Index surged by 252.51 points to 9,541.08. However, the Energy Index slid by 7.33 points to 758.39, and the Industrial Products and Services Index slightly declined by 0.74 of a point to 188.0.
The weekly turnover expanded to 16.22 billion units valued at RM15.34 billion, up from 14.37 billion units valued at RM13.12 billion in the previous week. The Main Market volume increased to 8.26 billion units worth RM12.71 billion against 7.06 billion units worth RM11.63 billion previously. The turnover for warrants rose to 5.33 billion units valued at RM710.62 million compared to 4.95 billion units valued at RM650.82 million last week. Additionally, the ACE Market volume climbed to 2.61 billion units valued at RM913.58 million from 2.30 billion units valued at RM832.72 million the previous week.