KUALA LUMPUR: Investors remained cautious on Bursa Malaysia ahead of the tabling of Budget 2027, even as high energy prices continued to sap trading momentum from global equities.
"Though equities have been resilient, further upside in long-end yields could bring more significant headwinds, and a higher-for-longer rate environment looks set to persist," said Apex Securities.
"We stay cautious on near-term global risk appetite, as the AI trade is showing signs of strain and oil remains sensitive to US-Iran headlines."
Brent crude futures for December delivery soared overnight past the US$103 a barrel mark, as Yemen's Iran-backed Houthis attacked Saudi Arabia while a storm in the Gulf of Mexico headed for US oil-producing regions.
According to the research firm, the FBM KLCI is expected to remain volatile in the near term, with oil price movements, foreign fund flows and developments in US-Iran tensions likely to outweigh domestic catalysts ahead of Budget 2027.
"We stay cautious to conservative on the local bourse, as persistent foreign selling, elevated crude oil prices and geopolitical uncertainty are likely to cap any rebound, with Friday's Budget 2027 the next key event to watch for fresh direction,:" it added.
At Friday's open, the FBM KLCI was a fraction higher at 1,602.94, with most heavyweights failing to rebound after the recent sell-off.
Top actives on the market included Dnex up 0.5 sen to 53 sen, XDL unchanged at 0.5 sen and L&G rising 0.5 sen to 19.5 sen.
