Bursa Malaysia Anticipates Range-Bound Trading Ahead of Hari Raya Holiday
Bursa Malaysia is forecasted to continue its range-bound trading with a slight upward bias due to the upcoming Hari Raya holiday. The FBM KLCI has key resistance and support levels to monitor. The market remains influenced by external factors, with cautious trading observed last week. Overall turnover increased slightly despite declines in certain index values.
Bursa Malaysia is anticipated to persist in its range-bound trading next week, with an inclination towards a slight upward trend as the Hari Raya holiday approaches. Mohd Sedek Jantan, head of investment research at UOB Kay Hian Wealth Advisors Sdn Bhd, indicated that the FTSE Bursa Malaysia KLCI (FBM KLCI) is currently trading between 1,510 and 1,515. He highlighted critical resistance at 1,550 and support at 1,500.
Despite a notable downturn in Malaysian equities due to various unrelated factors, it is expected that external challenges—such as US import tariff risks, the Russia-Ukraine conflict, and concerns regarding China’s economic performance—may gradually diminish. This easing is likely to stabilize foreign equity outflows, as remarked by Mr. Jantan.
The FTSE Bursa Malaysia KLCI experienced cautious trading recently, reflecting significant investor apprehension and portfolio adjustments across global markets. Influences included trade tensions, central bank policies, and various geopolitical events. On a week-to-week basis, the key index saw a decrease of 6.70 points, closing at 1,505.45 from 1,512.15 the previous week.
Sector performance varied, with the FBM Emas Index rising by 5.65 points to 11,305.79, while the FBMT 100 Index fell by 8.45 points to 11,061.38. The FBM Emas Shariah Index registered an uptick of 37.59 points to reach 11,027.17. In other indices, the FBM 70 Index surged by 149.60 points and the FBM ACE Index climbed by 146.96 points. The Industrial Products and Services Index slightly declined, while the Financial Services Index saw a notable decrease.
Overall turnover increased slightly to 16.55 billion units valued at RM12.15 billion, compared to 16.40 billion units worth RM14.47 billion in the prior week. The Main Market volume and the ACE Market experienced drops in trading volumes and values. It should be noted that Bursa Malaysia was closed on Tuesday for the Nuzul Al-Quran public holiday.
In summary, Bursa Malaysia is expected to maintain range-bound trading with a slight upward bias ahead of the Hari Raya holiday. The market is responding cautiously to various global factors, with external risks expected to ease gradually. While key indices experienced fluctuations, overall market turnover showed a slight increase, reflecting ongoing adjustments amidst market sentiments. Attention is required on the critical resistance and support levels identified.
Original Source: www.bernama.com
