Bursa Malaysia Seen Trading Within 1,600-1,630 Points Range Next Week With Cautious Upside Bias
By Durratul Ain Ahmad Fuad
KUALA LUMPUR, Oct 10 (Bernama) -- Bursa Malaysia is expected to trade within the 1,600-1,630 points range next week, with a cautious upside bias on selective accumulation of blue chips.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said valuations were becoming more attractive, although fragile investor sentiment could temper buying interest.
“Looking ahead to next week, we expect selective bargain hunting to support a gradual recovery, although geopolitical uncertainties, elevated energy prices and volatile bond yields could limit the upside,” he told Bernama.
For the trading week ended yesterday, Bursa Malaysia traded mostly higher supported by improved investor sentiment and ended the week higher, buoyed by market optimism and sustained buying activity following the Budget 2027 announcement, which provided fresh catalysts for the market.
Under Budget 2027, the federal government has allocated a total of RM459.8 billion, up 3.6 per cent from the revised 2026 allocation, equivalent to 19.8 per cent of gross domestic product (GDP).
Operating expenditure accounts for RM376.8 billion, while RM83 billion has been allocated for development expenditure (DE).
Education receives the largest allocation at almost RM69 billion, followed by health at RM47.7 billion and security with RM44 billion allocation.
Prime Minister Datuk Seri Anwar Ibrahim announced that Khazanah Nasional Bhd and InvestPenang will establish a RM100 million Strategic Investment Fund to support semiconductor and advanced manufacturing companies in their early stages of growth.
Meanwhile, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said IPPFA Malaysia has forecast a GDP growth of 4.9 per cent in 2027, within the official range of 4.2 per cent-5.2 per cent.
“Sustaining this growth will depend on the strength of private consumption and investment, the fiscal multiplier of public spending, and the extent to which public investment crowds in private capital.
“The key policy challenge is to maximise domestic value added and growth multipliers while containing the fiscal deficit and preserving fiscal space,” he said.
RHB Investment Bank Bhd (RHB IB) said investment growth in 2027 will be supported by higher DE of RM83 billion against RM81 billion in 2026, with major allocations directed towards transportation, education and training, healthcare, and trade and industry.
It said the construction sector should benefit from major infrastructure projects, including the East Coast Rail Link (ECRL), the Elevated Autonomous Rapid Transit (E-ART) system, Kuala Lumpur Northern Dispersal Expressway (KL NODE), and Light Rail Transit Line 3 (LRT3) Phase 2.
RHB IB also said the services sector should remain a key growth contributor, supported by resilient private consumption, higher tourist arrivals following Visit Malaysia 2026-2027 and initiatives to accelerate digital-economy development.
“We remain broadly optimistic about manufacturing growth, underpinned by continued expansion in export-oriented industries, healthy investment spending and business-friendly policies.
“However, external uncertainties, including the sustainability of the artificial intelligence investment cycle, geopolitical tensions and developments in United States tariff policy, could affect export demand and investment decisions.
"Malaysia’s diversified economic base and supportive domestic policies should provide some buffer against these headwinds,” it said.
On a Friday-to-Friday basis, the FTSE Bursa Malaysia KLCI (FBM KLCI) dropped 22.42 points to 1,608.45 at yesterday’s close from 1,630.87 a week earlier.
On the index board, the FBM Emas Index fell 71.74 points to 12,098.83, the FBM Top 100 Index lost 86.28 points to 11,871.40, and the FBM Emas Shariah Index added 69.46 points to 12,129.78.
The FBM ACE Index rose 125.11 points to 5,654.57, and the FBM Mid 70 Index gained 201.18 points to 17,683.11.
By sector, the Energy Index edged up 5.54 points to 838.57, the Plantation Index erased 166.29 points to 8,890.26, and the Industrial Products and Services Index climbed 2.23 points to 180.75. The Financial Services Index sank 615.69 points to 18,424.82.
Weekly turnover advanced to 19.63 billion units worth RM15.72 billion from 17.39 billion units worth RM14.42 billion in the previous week.
Main Market volume improved to 11.86 billion units valued at RM13.68 billion from 10.31 billion units valued at RM12.69 billion previously.
Warrants turnover strengthened to 4.91 billion units worth RM816.07 million from 4.40 billion units worth RM708.35 million in the previous week.
ACE Market volume expanded to 2.86 billion units valued at RM1.22 billion compared with 2.67 billion units valued at RM1.00 billion in the previous week.
-- BERNAMA