Kuala lumpur: Bursa Malaysia is anticipated to trade within a narrow range with a downside bias in the upcoming week as global market volatility intensifies, an analyst has reported.
According to BERNAMA News Agency, SPI Asset Management managing partner Stephen Innes noted that global markets have become more volatile as investors reevaluate stretched valuations and anticipate the timing of US Federal Reserve rate cuts. The fluctuations in US tech stocks and Treasury yields are expected to remain key external influences on ASEAN risk assets.
Domestically, investors are expected to continue processing recent trade and inflation data against Bank Negara Malaysia's steady policy stance. Innes highlighted that the softer manufacturing PMI (purchasing manufacturing index) serves as a reminder that external demand has not fully recovered, which should keep domestic rallies subdued and promote a market shift towards defensives, yield names, and domestic demand plays rather than exporters.
In the past week, the FBM KLCI slipped back to the 1,610-1,630 range in line with the regional market downturn. Despite this, Innes emphasized that Malaysia's macroeconomic foundation remains solid, bolstered by robust third-quarter economic growth, strong domestic demand, and a recovery in exports.
Additionally, foreign investors have turned into small net buyers after weeks of outflows, while Malaysia continues to experience healthy demand in its bond market, indicating sustained overseas interest in ringgit assets.
On a Friday-to-Friday basis, the FBM KLCI decreased by 8.10 points to 1,617.57 from the previous week's 1,625.67. The FBM Emas Index fell 58.04 points to 11,996.81, the FBMT 100 Index dropped 52.95 points to 11,770.11, and the FBM Emas Shariah Index declined 66.49 points to 11,992.68.
The FBM ACE Index decreased by 42.17 points to 4,941.59, and the FBM 70 Index fell by 49.84 points to 16,841.03. In terms of sectors, the Plantation Index rose by 96.55 points to 8,236.63, the Energy Index edged up 0.35 points to 755.96, while the Industrial Products and Services Index fell by 2.06 points to 164.93, and the Financial Services Index decreased by 55.34 points to 18,376.0.
Weekly turnover increased significantly to 21.84 billion units worth RM14.44 billion compared to the previous week's 14.56 billion units worth RM11.17 billion. The Main Market volume rose to 7.41 billion units worth RM11.50 billion from 5.98 billion units worth RM9.47 billion previously. Warrants turnover surged to 11.89 billion units valued at RM2.08 billion from last week's 6.73 billion units valued at RM1.08 billion. The ACE Market volume expanded to 2.53 billion units valued at RM858.82 million from 1.83 billion units valued at RM611.92 million a week ago.