KUALA LUMPUR: Bursa Malaysia is expected to remain in a consolidation phase this week until greater clarity on the US trade policy emerges.
Amid the ongoing uncertainties, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng anticipates the main index to trend within the 1,580 to 1,600 range this week, representing the support and resistance levels.
“We believe cautious sentiment surrounding the US tariff war and its potential impact on the market will persist,” he told Bernama.
UOB Kay Hian Wealth Advisors Sdn Bhd head of investment research Mohd Sedek Jantan said that trade pressures are expected to peak in the second quarter of the year.
“Furthermore, concerns about inflation could dampen investor sentiment, potentially delaying a stronger market rebound in the second half of the year.
“As global investors navigate these uncertainties, Malaysian markets may continue to experience volatility, with sentiment closely tied to external developments,” he said.
On the home front, the market will closely monitor Malaysia’s consumer price index to be released this week, alongside earnings announcements by Hartalega Holdings Bhd
, Kossan Rubber Industries Bhd, Genting Malaysia Bhd and Sunway Construction Bhd, among others.
Last Thursday, US president Donald Trump directed the US Trade Representative and Commerce secretary to investigate the proposed reciprocal tariffs, with implementation likely in April.
The recent announcement of reciprocal tariffs has provided some relief as markets had feared more immediate action, helping Bursa Malaysia to end the week on a slightly bearish note.
For the trading week, the FBM KLCI trended mostly lower, dampened by the US tariff policy, sparking concerns over its impact on the global economy, inflation, supply chains and investment plans.
On a Friday-to-Friday basis, the FBM KLCI posted a modest gain of 0.69 of-a point to 1,591.60 compared with 1,590.91 a week earlier.
The FBM Emas Index slid 42.92 points to 12,106.61, the FBMT 100 Index shed 26.11 points to 11,813.95, and the FBM Emas Shariah Index tumbled 138.13 points to 11,847.51. The FBM ACE Index fell 125.57 points to 5,134.78.
