Kuala lumpur: Bursa Malaysia is anticipated to experience subdued trading within the 1,580 to 1,620 points range next week, largely due to a holiday-shortened period with investors' attention centered on the upcoming US Federal Open Market Committee (FOMC) meeting.
According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd's chief economist, Dr. Mohd Afzanizam Abdul Rashid, highlighted that the key index exceeded the psychological level of 1,600 points this week. This movement is fueled by expectations of an interest rate cut by the US Federal Reserve in the coming week. He mentioned that the recent US Consumer Price Index, aligning with expectations, may allow the Fed to ease its policy rate by 25 basis points. Consequently, traders and investors are keenly awaiting the FOMC decision, which will be announced on September 18 (Malaysian time).
Dr. Mohd Afzanizam further emphasized that the quarterly forecast will be crucial, particularly regarding whether the Fed plans to increase monetary policy easing over the next two years. Typically, such easing would positively impact the equity market, potentially keeping the FBM KLCI above the 1,600-point mark next week.
Meanwhile, Thong Pak Leng, vice-president of equity research at Rakuten Trade Sdn Bhd, noted that participation and trading volumes are likely to decline next week. This caution stems from the absence of new local catalysts, which keeps the index mainly in consolidation mode.
On a weekly basis, the FBM KLCI increased by 21.98 points to 1600.13 on Friday from 1,578.15 the previous Thursday. The market was closed on September 5 due to the Maulidur Rasul public holiday. Additionally, Bursa Malaysia will be closed on September 15 in conjunction with the Malaysia Day holiday on September 16, resuming operations on September 17.
In terms of index movements, the FBM Emas Index rose by 147.43 points to 11,862.72, the FBMT 100 Index climbed 139.61 points to 11,623.77, and the FBM Emas Shariah Index surged 214.77 points to 11,890.29. The FBM ACE Index increased by 63.54 points to 4,802.27, while the FBM 70 Index gained 109.86 points to 16,544.57.
Sector-wise, the Plantation Index increased by 95.11 points to 7,699.54, and the Industrial Products and Services Index rose by 2.29 points to 165.28. However, the Financial Services Index fell by 46.02 points to 18,068.42, and the Energy Index decreased by 0.72 points to 742.9.
Weekly turnover saw a significant increase to 12.52 billion units worth RM11.25 billion from the previous week's 7.92 billion units worth RM7.89 billion. The weekly Main Market volume rose to 6.96 billion units valued at RM9.98 billion, compared to the prior week's 4.39 billion units valued at RM7.17 billion.
Warrant turnover climbed to 4.03 billion units worth RM660.45 million from 2.44 billion units worth RM359.34 million the previous week. The ACE Market volume also grew to 1.52 billion units valued at RM610.19 million, up from 1.07 billion units valued at RM362.01 million previously.