Kuala lumpur: Bursa Malaysia is anticipated to trade with an upside bias next week, as an analyst projects the benchmark index to be within the 1,725-1,750 range.
According to BERNAMA News Agency, Rakuten Trade Sdn Bhd head of research Kenny Yee mentioned that the market is likely to remain in a consolidation phase. Investors continue to assess resilient corporate earnings against ongoing foreign selling and uncertainties related to global interest rates and geopolitical developments.
Despite the expectation of decent corporate earnings, Yee noted that persistent net foreign outflows have limited the index's upward movement. Meanwhile, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan shared that the FTSE Bursa Malaysia KLCI (FBM KLCI) is projected to maintain its upward trajectory next week. However, he warned of possible profit-taking if the index surpasses the 1,740 level following recent gains.
Jantan emphasized the importance of global bond yields, especially for Malaysian banks. He highlighted that the recent increase in the US 10-year Treasury yield has raised global discount rates and exerted pressure on banking valuations as investors reassess funding costs and net interest margin prospects. A sustained recovery in Malaysian banking stocks is likely to necessitate greater stability in global bond yields, supported by resilient domestic earnings and improving investor flows.
Jantan further noted that while the market is expected to remain constructive, it will become increasingly selective. The sustainability of the next upward movement will likely be influenced by the 1,740 level, US Treasury yields, Brent crude prices, and foreign flows.
On a Friday-to-Friday basis, the FBM KLCI rose 9.09 points to 1,736.48 from 1,727.39 the previous week. On the index board, the FBM Emas Index increased by 16.84 points to 12,832.28, the FBM Top 100 Index gained 24.66 points to 12,650.92, and the FBM Emas Shariah Index climbed 12.56 points to 12,641.79. The FBM ACE Index surged 39.01 points to 5,333.79, while the FBM Mid 70 Index decreased by 142.15 points to 18,151.04.
By sector, the Plantation Index surged 113.25 points to 9,440.65, the Financial Services Index decreased by 70.63 points to 20,440.65, while the Energy Index shed 2.43 points to 777.03, and the Industrial Products and Services Index eased by 0.01 of a point to 187.22.
The weekly turnover expanded to 18.70 billion units worth RM15.92 billion, up from 17.66 billion units worth RM14.42 billion in the prior week. The Main Market volume increased to 9.84 billion units valued at RM13.95 billion from 8.91 billion units valued at RM12.59 billion previously. Warrants turnover improved to 5.60 billion units worth RM745.83 million, compared to 5.30 billion units worth RM719.94 million last week. Conversely, the ACE Market volume declined to 3.15 billion units valued at RM1.60 billion from 3.42 billion units valued at RM1.11 billion in the previous week.