Kuala Lumpur: The FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to trade sideways next week in a shortened trading week, hovering between 1,505 and 1,515.
According to BERNAMA News Agency, UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan noted that the focus will be on the US announcement of 25 percent tariffs on all foreign-made cars, effective April 2.
Adding complexity to the market situation, President Donald Trump's TikTok ban moratorium is set to expire on April 5. This could potentially serve as a bargaining tool in the ongoing tariff negotiations. Trump's willingness to ease tariffs on Chinese imports in exchange for a favorable TikTok resolution shows the intricate interplay between trade policy and geopolitical strategy.
Mohd Sedek said that if the tariffs align with expectations, investor confidence may remain steady, supported by Malaysia's moderate trade surplus and limited tariff exposure. He does not expect major movement next week, anticipating that the FBM KLCI should benefit from a shortened three-day trading week, which may shield it from global volatility.
During the trading week just ended, the FBM KLCI initially fell due to caution over US tariffs, then rebounded on bargain hunting and positive cues from Wall Street. It rose for three consecutive days, supported by buying interest and investor confidence, before slipping again due to profit-taking and concerns over a regional earthquake. On a Friday-to-Friday basis, the key index added 8.20 points to 1,513.65 compared with 1,505.45 a week earlier.
In terms of sector performance, the FBM Emas Index added 42.25 points to 11,348.04, the FBMT 100 Index improved 41.74 points to 11,103.12, and the FBM Emas Shariah Index expanded by 97.24 points to 11,124.41. Meanwhile, the FBM 70 Index eased 11.98 points to 16,276.09, and the FBM ACE Index slipped 15.72 points to 4,808.92.
Sector-specific movements saw the Industrial Products and Services Index dip 0.16 of-a-point to 153.27, the Financial Services Index decline 55.62 points to 18,384.21, and the Plantation Index ease 12.20 points to 7,437.73. However, the Energy Index advanced 6.18 points to 757.98.
Overall turnover was higher at 14.0 billion units valued at RM11.43 billion compared to 12.54 billion units valued at RM12.15 billion in the previous week. The Main Market volume increased to 6.25 billion units worth RM9.90 billion from 6.12 billion units worth RM10.95 billion previously. Turnover of warrants rose to 6.05 billion units valued at RM995.45 million against 4.97 billion units valued at RM671.69 million in the prior week. The ACE Market volume improved to 1.70 billion units worth RM529.23 million from 1.45 billion units worth RM524.70 million previously.
Bursa Malaysia and its subsidiaries will be closed on Monday and Tuesday should Hari Raya Aidilfitri fall on Monday.