KUALA LUMPUR (Bernama): Bursa Malaysia is expected to trade within a narrow range this week as market participants adopt a cautious stance without resorting to immediate knee-jerk reactions, which should help limit short-term volatility.
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said next week will also see a shortened trading period due to Tuesday’s Nuzul Al-Quran holiday.
As the United States (US) retail sales data will be released only after local market hours on Monday, Bursa Malaysia’s reaction may be delayed until Wednesday, he said.
"This delay could provide a stabilising effect, allowing investors more time to assess Wall Street’s response and adjust their strategies accordingly,” he told Bernama.
Mohd Sedek said that while a market rebound is possible following the recent sell-off, investor sentiment is expected to remain cautious due to the persistent risk of further tariff announcements by US President Donald Trump.
Despite signs of easing inflation, he said, the upcoming February retail sales data for China and the US -- set for release on Monday -- will be closely monitored for insights into consumer spending trends and broader economic resilience.
A key global event next week will be the Federal Reserve’s (Fed) Federal Open Market Committee meeting on March 19-20.
"While no rate cut is expected, the Fed will update its Summary of Economic Projections, including the latest ‘dot plot,’ which outlines policymakers’ expectations for future rate moves,” he explained.
For the trading week just ended, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined by 2.16 per cent, reflecting the broader market weakness as trading activity was heavily influenced by Wall Street’s sell-off, which pushed the FBM KLCI into a technical correction.
However, as stocks reached oversold levels, bargain hunting helped to stabilise the market, limiting further downside.
On a Friday-to-Friday basis, the key index fell 35.12 points to 1,512.15 compared with 1,547.27 a week earlier.
Meanwhile, the FBM Emas Index fell 220.66 points to 11,300.14, the FBMT 100 Index tumbled 225.72 points to 11,069.83, the FBM Emas Shariah Index dropped 190.37 points to 10,989.58, and the FBM 70 Index lost 204.0 points to 16,138.47; but the FBM ACE Index increased 89.89 points to 4,677.68.
By sector, the Industrial Products and Services Index edged down 1.50 points to 153.73, the Financial Services Index declined 543.86 points to 18,522.82, and the Plantation Index eased 110.33 points to 7,369.75. However, the Energy Index rose 3.69 points to 718.73.
Turnover increased to 16.40 billion units valued at RM14.47 billion from 15.56 billion units valued at RM13.32 billion in the preceding week.
The Main Market volume grew to 8.96 billion units worth RM13.18 billion from 8.40 billion units worth RM12.10 billion previously.
Warrants turnover rose to 5.45 billion units valued at RM622.41 million versus 5.14 billion units valued at RM570.74 million in the prior week.
The ACE Market volume slid to 1.97 billion units worth RM667.75 million from 2.0 billion units worth RM647.06 million previously. - Bernama
