KUALA LUMPUR: Bursa Malaysia’s benchmark index is expected to trade in a range-bound mode with a cautious bias within the 1,700 to 1,730 range this week.
Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng said this is due to the absence of strong positive catalysts.
He said volatility is likely to remain elevated as markets track developments in West Asia and oil price movements.
“We maintain a cautious outlook on the domestic front, despite selective bargain hunting, as persistent geopolitical tensions and elevated crude oil prices raise concerns over inflation and cost pressures.
“While energy-related stocks may find some support, broader market participation is expected to stay subdued as investors adopt a defensive stance,” Thong told Bernama.
For the shortened week just ended, Bursa Malaysia traded mixed, with sentiment influenced by the West Asia conflict, US megacap earnings, the United Arab Emirates’ decision to exit the Organisation of the Petroleum Exporting Countries and its allies, and elevated oil prices.
Bursa Malaysia and its subsidiaries were closed last Friday, in conjunction with the Labour Day public holiday.
On a Thursday-to-Friday basis, the FBM KLCI added 1.68 points to 1,722.02 from 1,720.34 a week earlier.
On the index board, the FBM Top 100 Index gained 10.76 points to 12,560.06, the FBM Emas Index increased 8.02 points to 12,723.74, the FBM Emas Syariah Index grew 131.75 points to 12,718.36, the FBM ACE Index fell 34.21 points to 4,618.11, while the FBM Mid 70 Index climbed 13.54 points to 18,085.97.
By sector, the Financial Services Index sank 337.78 points to 19,885.03, the Industrial Products and Services Index added 3.95 points to 196.31, the Energy Index increased 10.36 points to 840.67, and the Plantation Index improved 94.05 points to 8,939.31.
