Kuala lumpur: Trading on Bursa Malaysia is expected to remain cautious and range-bound next week, as the local bourse continues to be confined within the 1,680-1,740 range driven by the West Asia conflict, said an economist.

According to BERNAMA News Agency, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan noted that while the sell-off has stabilized, any potential upside remains capped. This suggests that investors are holding their positions rather than increasing their risk exposure. He highlighted that the current levels are still below key moving averages, indicating that the market has surpassed the panic phase but has not yet entered a convincing recovery, leaving positioning cautious and conviction limited.

Investors are advised to remain balanced and not overreact to developments in West Asia, as underlying risks remain unresolved. Mohd Sedek emphasized the importance of this approach, especially as elevated energy prices begin to influence inflation expectations, reducing the likelihood of near-term rate cuts. Additionally, tighter global liquidity continues to limit the strength of any potential rebound. He identified the 1,725-1,730 zone as a key threshold, cautioning that any break above must be sustained. Until then, Bursa Malaysia should be viewed as consolidating rather than recovering.

For the week just ended, Bursa Malaysia traded mostly lower, reflecting the regional market performance amid the ongoing West Asia conflict. On a Friday-to-Friday basis, the FBM KLCI eased 17.15 points to 1,695.50 from 1,712.65 a week earlier. On the index board, the FBM Top 100 Index declined 86.38 points to 12,251.12, the FBM Emas Index slipped 73.10 points to 12,392.16, the FBM Emas Shariah Index eased 2.63 points to 12,269.56, and the FBM ACE Index decreased 17.53 points to 4,309.92, while the FBM Mid 70 Index rose 42.15 points to 17,140.94.

By sector, the Financial Services Index tumbled 477.78 points to 19,849.72, the Plantation Index surged 450.54 points to 9,155.51, the Industrial Products and Services Index edged up 1.86 points to 184.75, and the Energy Index garnered 20.23 points to 818.52. The weekly turnover expanded to 17.79 billion units worth RM18.83 billion against 12.24 billion units worth RM13.69 billion a week earlier. The Main Market volume soared to 11.56 billion units worth RM17.73 billion against 7.64 billion units worth RM12.81 billion previously. Warrants turnover swelled to 4.92 billion units valued at RM616.50 million from 3.54 billion units valued at RM495.25 million last week. The ACE Market volume increased to 1.31 billion units valued at RM479.05 million from 1.04 billion units valued at RM376.06 million in the previous week.