Bursa Malaysia Expected To Trade With A Positive Bias Next Week
By Abdul Hamid A Rahman
KUALA LUMPUR, Sept 5 (Bernama) -- Bursa Malaysia is expected to trade with a positive bias next week, underpinned by resilient domestic fundamentals and improving regional sentiment.
IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said Malaysia’s manufacturing Purchasing Managers’ Index (PMI) remains above the 50-point expansion threshold, while stronger US Institute for Supply Management (ISM) Services data for August points to continued momentum in global activity and demand.
“China’s trade data on Tuesday will be closely watched for confirmation that external demand remains firm, with a stronger-than-expected print likely to benefit Malaysia given its close trade and manufacturing linkages with China,” he said.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said that, looking ahead to next week, Bursa Malaysia is likely to remain in consolidation mode as investors assess developments in West Asia, crude oil prices and their potential impact on global inflation.
“Foreign institutions remained net sellers this week, while local institutions and retail investors continued to absorb the selling.
“From a technical perspective, the 1,700 level remains an important psychological support, while the 1,720 level should provide near-term resistance,” he told Bernama.
Thong said that with neither the domestic nor external backdrop providing a sufficiently strong catalyst for a decisive breakout, the benchmark index is expected to trade within the 1,700–1,730 range next week.
This week, Bank Negara Malaysia’s Monetary Policy Committee decided to maintain the Overnight Policy Rate (OPR) at 2.75 per cent.
The central bank said the latest indicators point to resilient global growth, supported by strong global tech expansion, improving supply conditions and stable labour markets.
It noted that inflation has edged lower in recent months but is expected to remain elevated given the lagged pass-through of energy costs to consumer prices.
On a Friday-to-Friday basis, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined 17.78 points to 1,708.10 from 1,725.88 a week earlier.
On the index board, the FBM Emas Index fell 139.18 points to 12,625.45, the FBM Top 100 Index lost 145.59 points to 12,429.26, and the FBM Emas Shariah Index slipped 191.39 points to 12,360.70, the FBM ACE Index gave up 31.91 points to 5,217.47, while the FBM Mid 70 Index tumbled 277.69 points to 17,769.20.
By sector, the Energy Index advanced 27.24 points to 805.62, and the Plantation Index improved 28.26 points to 9,337.92, while the Industrial Products and Services Index shed 2.31 points to 186.96, and the Financial Services Index dipped 81.98 points to 20,161.49.
The weekly turnover increased to 17.97 billion units worth RM14.14 billion from 16.70 billion units worth RM17.24 billion in the prior week.
The Main Market volume jumped to 12.00 billion units valued at RM12.85 billion against 9.70 billion units valued at RM15.60 billion previously.
Warrants turnover dwindled to 3.83 billion units worth RM542.71 million versus 4.47 billion units worth RM636.22 million last week.
The ACE Market volume narrowed to 2.13 billion units valued at RM743.53 million compared with 2.52 billion units valued at RM993.49 million in the previous week.
-- BERNAMA