KUALA LUMPUR (Bernama): Bursa Malaysia is expected to remain in a consolidation phase this week until greater clarity on the US trade policy emerges.
Amid the ongoing uncertainties, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng anticipates the main index to trend within the 1,580-1,600 range next week, representing the support and resistance levels.
"We believe cautious sentiment surrounding the US tariff war and its potential impact on the market will persist,” he told Bernama.
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said that trade pressures are expected to peak in the second quarter of the year.
"Furthermore, concerns about inflation could dampen investor sentiment, potentially delaying a stronger market rebound in the second half of the year.
"As global investors navigate these uncertainties, Malaysian markets may continue to experience volatility, with sentiment closely tied to external developments,” he said.
On the home front, the market will closely monitor Malaysia’s consumer price index (CPI) to be released next week, alongside earnings announcements by Hartalega, Kossan Rubber Industries, Genting Malaysia, and Sunway Construction, among others.
On Thursday, US President Donald Trump directed the US Trade Representative and Commerce secretary to investigate the proposed reciprocal tariffs, with implementation likely in April.
The recent announcement of reciprocal tariffs has provided some relief as markets had feared more immediate action, helping Bursa Malaysia to end the week on a slightly bearish note.
For the trading week, the FTSE Bursa Malaysia KLCI (FBM KLCI) trended mostly lower, dampened the US tariff policy, sparking concerns over its impact on the global economy, inflation, supply chains, and investment plans.
On a Friday-to-Friday basis, the FBM KLCI posted a modest gain of 0.69 of-a point to 1,591.60 compared with 1,590.91 a week earlier.
The FBM Emas Index slid 42.92 points to 12,106.61, the FBMT 100 Index shed 26.11 points to 11,813.95, and the FBM Emas Shariah Index tumbled 138.13 points to 11,847.51.
The FBM ACE Index fell 125.57 points to 5,134.78 and the FBM 70 Index slipped 162.30 points to 17,871.23.
By sector, the Financial Services Index climbed 109.20 points to 19,342.64 and the Plantation Index went up 1.04 points to 7,454.92.
The Industrial Products and Services Index eased 2.51 points to 163.99, the Energy Index slid 27.89 points to 798.55, the Healthcare Index decreased 21.97 points to 2,213.65, and the Technology Index was 2.11 points lower at 58.56.
Turnover declined to 11.99 billion units valued at RM9.14 billion from 13.05 billion units valued at RM10.46 billion in the preceding week.
The Main Market volume dropped to 5.95 billion units worth RM7.98 billion against 6.27 billion units worth RM9.04 billion previously.
Warrants turnover dwindled to 3.95 billion units valued at RM450.56 million versus 4.25 billion units valued at RM452.29 million last week.
The ACE Market volume decreased to 2.08 billion units worth RM704.93 million from 2.52 billion units worth RM968.79 million in the previous week. - Bernama
