KUALA LUMPUR (Bernama): Bursa Malaysia is expected to rise further this week, supported by steady buying interest and strengthening overall sentiment.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said at current levels, the FTSE Bursa Malaysia KLCI (FBM KLCI) is moving toward an important historical zone, with the previous higher peak of 1,721.42 recorded on Feb 22, 2019.
Yesterday, the benchmark index reached 1,719.99, just shy of the 1,720 mark.
"We reckon a decisive break above this level will be crucial, as it would signal the next wave of upward momentum and potentially pave the way for further gains in the broader market.
"As such, we anticipate the FBM KLCI to trade within the 1,700-1,730 range next week,” he told Bernama.
Meanwhile, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said moving forward, Bursa Malaysia is expected to trade on a measured and orderly tone next week, with market direction shaped more by external macro signals than domestic catalysts.
"Investor attention will centre on the upcoming US Federal Reserve policy decision, though expectations for any immediate policy change remain low.
"Recent US inflation data has broadly met expectations, supporting the view that inflation pressures are easing without signs of renewed acceleration,” he said.
Regionally, attention will also turn to China, with December industrial profits data due for release, he said.
Mohd Sedek said that with next week marking the end of the January trading month and the FBM KLCI is expected to close above the 1,730 level, it would represent its highest monthly close since 2018.
"In the immediate term, the index is likely to test the 1,730-1,740 range, which we continue to view as modest upside rather than a decisive breakout,” he said, adding that trading activity is likely to remain selective, with investors favouring disciplined positioning amid lingering macro uncertainties.
Bursa Malaysia traded lower at the beginning of this week before rebounding at the end of the week on positive sentiment surrounding the Overnight Policy Rate status quo, easing geopolitical uncertainty and strengthening ringgit.
On a Friday-to-Friday basis, the FBM KLCI garnered 7.25 points to 1,719.99 from 1,712.74 a week earlier.
On the index board, the FBM Emas Index increased 15.51 points to 12,660.54, the FBMT 100 Index rose 19.08 points to 12,455.80, and the FBM Emas Shariah Index went up 6.83 points to 12,309.65, while the FBM 70 Index trimmed 123.39 points to 17,562.22 and the FBM ACE Index fell by 68.38 points to 4,905.05.
By sector, the Financial Services Index gained 77.36 points to 20,803.17, the Plantation Index edged up 2.67 points to 8,369.77, and the Industrial Products and Services Index improved 1.42 points to 176.49, while the Energy Index dipped 14.67 points to 769.38.
Weekly turnover shrank to 15.10 billion units worth RM15.66 billion from 15.97 billion units worth RM15.88 billion last week.
The Main Market volume dropped to 8.15 billion units worth RM14.27 billion compared to 8.37 billion units worth RM14.24 billion previously.
Warrants turnover fell to 4.34 billion units valued at RM529.99 million from 5.01 billion units valued at RM697.01 million a week ago.
The ACE Market volume grew to 2.60 billion units valued at RM847.79 million from 2.58 billion units valued at RM932.35 million last week. -- Bernama
