KUALA LUMPUR, May 16 (Bernama): Bursa Malaysia is expected to trade with a mild upside bias this week as investors continue assessing a complex mix of external geopolitical developments, resilient domestic macroeconomic conditions and critical earnings catalysts from the US technology sector.
IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said while market sentiment remained relatively positive this week, investors are likely to stay highly sensitive to any developments surrounding the recent US President Donald Trump-Chinese President Xi Jinping engagement, particularly after no formal trade agreement or concrete policy breakthrough emerged from the discussions.
He said the absence of a definitive trade framework leaves markets vulnerable to headline-driven volatility, especially given Trump’s historical tendency to make market-moving statements following overseas visits rather than during the meetings themselves.
"Any renewed rhetoric surrounding tariffs, technology restrictions, or China-related trade policies over the weekend or in the coming week could quickly influence regional risk appetite, including sentiment towards Malaysian equities,” he told Bernama.
On the domestic front, Mohd Sedek said Malaysia’s stronger-than-expected first quarter (1Q 2026) gross domestic product (GDP) performance reinforces confidence in the resilience of the domestic economy, supported by firm private consumption, stable labour market conditions and continued household spending momentum.
He noted that the latest growth figures suggest that domestic demand remains a critical stabilising anchor for the economy despite persistent external uncertainties.
"However, the stronger GDP print does not fully insulate Malaysia from rising global risks, particularly geopolitical tensions in major economies and the recent rebound in global crude oil prices, both of which could eventually influence inflation expectations, fiscal dynamics and external trade sentiment,” he added.
On Friday, Bank Negara Malaysia (BNM) announced that Malaysia’s economy expanded by 5.4 per cent in 1Q 2026, slightly exceeding the advance estimate of 5.3 per cent.
The pace of growth, however, eased from the 6.2 per cent recorded in 4Q 2025.
The central bank said the 5.4 per cent growth was mainly driven by domestic demand.
For the week just ended, Bursa Malaysia traded mostly lower in line with the weaker regional market sentiment as investors adopted a cautious stance amid renewed concerns over rising global oil prices and potential inflationary spillover across major economies.
On a weekly basis, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 7.84 points to 1,740.22 from 1,748.06 a week earlier.
On the index board, the FBM Emas Index decreased 35.36 points to 12,894.87, the FBMT 100 Index weakened 39.22 points to 12,733.31, the FBM Emas Shariah Index slipped 15.46 points to 12,822.85, and the FBM Mid 70 Index increased 20.79 points to 18,505.01, while the FBM ACE Index jumped 131.42 points to 4,742.74.
By sector, the Plantation Index tumbled 252.98 points to 8,585.43, the Energy Index slid by 3.42 points to 808.89 and the Financial Services Index shaved 119.50 points to 20,254.31.
The Industrial Products and Services Index inched up 5.30 points to 199.95.
Weekly turnover expanded to 21.10 billion units valued at RM16.89 billion from 16.99 billion units valued at RM16.37 billion a week earlier.
The Main Market volume rose to 11.53 billion units valued at RM14.79 billion from 9.54 billion units valued at RM9.54 billion previously.
Warrants turnover swelled to 5.86 billion units valued at RM811.42 million compared with 5.43 billion units valued at RM752.02 million last week.
The ACE Market volume strengthened to 3.69 billion units valued at RM1.28 billion from 2.02 billion units valued at RM675.81 million in the previous week. -- BERNAMA
