KUALA LUMPUR (Bernama): Bursa Malaysia is expected to trade with an upward bias as investors continue to assess external geopolitical developments and resilient domestic economic conditions, said an analyst.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said Malaysia's stable interest rate environment, resilient domestic demand and ongoing infrastructure spending should continue to provide support for investor sentiment.
"Although geopolitical developments and higher oil prices may keep volatility elevated, bargain hunting is likely to emerge on market weakness.
"As such, we expect the FTSE Bursa Malaysia KLCI (FBM KLCI) to consolidate with an upward bias and move within the 1,720-1,750 range next week," he told Bernama.
Meanwhile, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the FBM KLCI is expected to remain driven by external developments, with investors closely monitoring the US July non-farm payrolls report for fresh clues on the US Federal Reserve's policy direction.
He said a jobs report that meets or falls short of market expectations would reinforce expectations of a September rate cut, supporting global risk appetite, foreign fund inflows and Malaysian equities.
"Conversely, a stronger-than-expected labour market could push US Treasury yields and the US dollar higher, triggering profit-taking across regional markets, including Bursa Malaysia," he said.
Overall, Mohd Sedek expects market volatility to remain elevated next week as investors navigate a combination of the US labour market report, China’s macroeconomic releases and evolving geopolitical developments in West Asia.
On a Friday-to-Friday basis, the FBM KLCI rose 10.85 points to 1,735.75 from 1,724.90 a week earlier.
On the index board, the FBM Emas Index increased 82.46 points to 12,834.25, the FBM Top 100 Index gained 75.09 points to 12,660.20, the FBM Emas Shariah Index garnered 66.94 points to 12,663.23, the FBM Mid 70 Index strengthened 90.73 points to 18,226.52, and the FBM ACE Index soared 105.27 points to 5,079.95.
By sector, the Financial Services Index put on 88.89 points to 20,416.53, and the Plantation Index surged 252.51 points to 9,541.08, while the Energy Index slid 7.33 points to 758.39, and the Industrial Products and Services Index inched down 0.74 of a point to 188.0
Weekly turnover expanded to 16.22 billion units worth RM15.34 billion from 14.37 billion units worth RM13.12 billion a week earlier.
The Main Market volume widened to 8.26 billion units valued at RM12.71 billion against 7.06 billion units valued at RM11.63 billion previously.
Warrants turnover rose to 5.33 billion units worth RM710.62 million versus 4.95 billion units worth RM650.82 million last week.
The ACE Market volume climbed to 2.61 billion units valued at RM913.58 million compared with 2.30 billion units valued at RM832.72 million in the previous week.
-- BERNAMA
