KUALA LUMPUR (Bernama): Bursa Malaysia is expected to resume its uptrend this week, testing the psychological threshold of 1,600, after already breaching the level on Monday (Aug 25).
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said as macroeconomic indicators continue to improve, he expects the FTSE Bursa Malaysia KLCI (FBM KLCI) to test that level, with the outlook underpinned by several drivers across domestic, global, and regional fronts.
"Domestic factors are supportive. Corporate earnings reported last week broadly met our analysts’ expectations, reinforcing confidence in forward earnings visibility.
"At the policy level, we expect Bank Negara Malaysia (BNM) to maintain its Overnight Policy Rate (OPR) at 2.75 per cent during the September meeting,” he told Bernama.
Mohd Sedek said that global conditions are turning more favourable.
"The US economy expanded more strongly than expected in the second quarter, with gross domestic product (GDP) revised up to 3.3 per cent and jobless claims declining, easing recession concerns.
"Optimism is also building around a potential US Federal Reserve (Fed) rate cut in September. The coming week will also be dominated by next Friday’s US non-farm payrolls report, which will serve as a crucial test for Fed policy.
"With the Fed’s dual mandate of maximum employment and price stability, labour market dynamics have become increasingly central, particularly as policymakers appear more confident that any tariff-related inflationary pressures will prove modest or temporary,” he added.
Meanwhile, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng opined that trading would be muted due to the fewer trading days resulting from the National Day and Prophet Mohammed’s Birthday holidays.
"We anticipate the benchmark index to trend within the range of 1,570-1,600,” he said.
On a weekly basis, the FBM KLCI contracted 22.35 points to 1,575.12 on Friday from 1,597.47 a week earlier.
The FBM Emas Index shrank 131.67 points to 11,702.89, the FBMT 100 Index eased 136.60 points to 11,474.57, the FBM Emas Shariah Index depreciated 112.34 points to 11,649.08, the FBM 70 Index declined 80.16 points to 16,476.24, and the FBM ACE Index slid 21.60 points to 4,722.02.
By sector, the Financial Services Index fell by 111.94 points to 18,111.02, the Plantation Index weakened by 13.94 points to 7,594.45, the Industrial Products and Services Index eased 3.11 points to 162.22, and the Energy Index lost 8.72 points to 740.22.
Weekly turnover improved to 16.30 billion units worth RM18.65 billion from 13.0 billion units worth RM13.53 billion in the previous week.
The weekly Main Market volume widened to 9.45 billion units valued at RM17.28 billion compared with 7.39 billion units valued at RM12.38 billion previously.
Warrants turnover rose to 4.74 billion units worth RM642.47 million from 2.91 billion units worth RM473.76 million in the preceding week.
The ACE Market volume increased to 2.11 billion units valued at RM721.77 million, versus 2.03 billion units valued at RM681.11 million previously. - Bernama
