KUALA LUMPUR (Bernama) -- Bursa Malaysia is likely to remain in a consolidation phase next week following its strong rally recently, with trading volume expected to stay thin during the long holiday week.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said the broader tone should remain constructive as long as buying interest emerges on dips and foreign inflows continue.
"Intermittent profit-taking may also persist, particularly in blue chips that have outperformed, as investors lock in gains and reassess positions.
"If the index holds firmly above the 1,730-1,740 support zone, confidence is likely to stay intact, setting the stage for another attempt to push higher. As such, we anticipate the FTSE Bursa Malaysia (FBM KLCI) to trend within the 1,730-1,760 range next week,” he told Bernama.
Echoing the sentiment, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said Bursa Malaysia is expected to trade in a mild, range-bound manner next week, reflecting a shortened trading period and thinner regional liquidity due to the Chinese New Year holiday.
"Foreign fund flows into heavyweight counters are likely to be more tactical and externally driven, increasing sensitivity to overnight global cues rather than Asia-led positioning. With China markets closed for most of the week, alongside partial or full closures in Hong Kong and Singapore, regional price discovery and risk-taking activity will be constrained,” he said.
Mohd Sedek said that following Friday’s close at 1,739.54, down 11.31 points, the index is expected to consolidate within the 1,735-1,745 range, as lower liquidity conditions typically dampen both upside momentum and downside acceleration.
He said Bursa Malaysia is also likely to see greater stock-specific and sectoral differentiation rather than broad-based index movements.
"While global volatility linked to artificial intelligence-driven disruption continues to influence overall risk appetite, its impact on the key index is expected to remain largely indirect, given the benchmark’s concentration in financials, utilities and consumer-related names.
"Overall, next week’s market tone is expected to remain cautious but orderly, with a consolidation bias prevailing as investors await the return of full regional participation and clearer external signals,” he said.
On a Friday-to-Friday basis, the FBM KLCI rose 6.71 points to 1,739.54 from 1,732.83 a week earlier.
On the index board, the FBM Top 100 Index improved 93.82 points to 12,564.81 and the FBM Emas Index gained 98.51 points to 12,738.20.
The FBM Mid 70 Index jumped 335.55 points to 17,569.67, the FBM Emas Shariah Index added 116.52 points to 12,222.01, and the FBM ACE Index advanced 110.26 points to 4,741.05.
Sector-wise, the Financial Services Index fell 46.94 points to 21,523.88, the Energy Index rose 12.09 points to 751.1, the Plantation Index gained 53.3 points to 8,376.93, and the Industrial Products and Services Index edged up 1.61 points to 175.08.
Weekly turnover grew to 12.87 billion units worth RM13.70 billion from 12.75 billion units worth RM12.97 billion a week earlier.
Main Market volume declined to 7.12 billion units worth RM12.5 billion from 7.22 billion units worth RM11.84 billion previously.
Warrants turnover slipped to 3.46 billion units valued at RM394.01 million from 3.60 billion units valued at RM430.75 million last week.
Meanwhile, ACE Market volume increased to 2.28 billion units valued at RM803.8 million from 1.92 billion units valued at RM680.70 million in the prior week. -- Bernama
