Kuala lumpur: Bursa Malaysia is anticipated to maintain a range-bound trading pattern within the 1,710-1,740 levels, exhibiting a positive bias in the upcoming week, according to an analyst.
According to BERNAMA News Agency, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng indicated that the local bourse's performance is likely to be buoyed by attractive valuations, steady market participation, and resilient domestic fundamentals. Thong stated that the recent market weakness has made valuations more appealing, which could encourage selective bargain hunting, providing support when trading resumes.
Meanwhile, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan mentioned that Bursa Malaysia is expected to witness relatively light trading volume in the coming week. He noted that the market faces a shortened trading week due to a public holiday on Monday, a state holiday on Tuesday, and the ongoing school holidays. Mohd Sedek added that trading activity might remain subdued as some investors may divert attention to global markets following the strong performance of US technology stocks.
Mohd Sedek also pointed out that market focus will be on Federal Reserve chair Kevin Warsh's speech at the Jackson Hole symposium on Friday night. His remarks will be scrutinized for insights into the Fed's monetary policy, particularly regarding inflation, interest rates, and US Treasury yields. With Bursa Malaysia closed on Monday, the local market's immediate reaction to the Jackson Hole outcome will be delayed, and the impact is expected to be observed when trading resumes after the extended holiday break.
In the previous week, Bursa Malaysia was closed on August 25 for Maulidur Rasul. On a Friday-to-Friday basis, the FBM KLCI fell by 10.60 points to 1,725.88 from 1,736.48 a week earlier. On the index board, the FBM Emas Index decreased by 67.65 points to 12,764.63, the FBM Top 100 Index dropped by 76.07 points to 12,574.85, and the FBM Emas Shariah Index declined by 89.70 points to 12,552.09. The FBM ACE Index reduced by 84.41 points to 5,249.38, and the FBM Mid 70 Index slipped by 104.15 points to 18,046.89.
By sector, the Energy Index inched up by 1.35 points to 778.38, and the Industrial Products and Services Index rose by 2.05 points to 189.27. However, the Plantation Index decreased by 130.99 points to 9,309.66, and the Financial Services Index fell by 21.93 points to 20,243.47.
The weekly turnover contracted to 16.70 billion units worth RM17.24 billion from 18.70 billion units worth RM15.92 billion in the previous week. The Main Market volume edged down to 9.70 billion units valued at RM15.60 billion against 9.84 billion units valued at RM13.95 billion previously. Warrants turnover decreased to 4.47 billion units worth RM636.22 million compared to 5.60 billion units worth RM745.83 million last week. The ACE Market volume declined to 2.52 billion units valued at RM993.49 million compared to 3.15 billion units valued at RM1.60 billion in the prior week.