Bursa Malaysia is projected to continue range-bound trading next week with a slight upward bias ahead of the Hari Raya holiday. Key support and resistance levels for the FBM KLCI are 1,500 and 1,550, respectively. A slight increase in turnover was noted, despite recent market corrections attributed to various external factors.
Bursa Malaysia is anticipated to maintain its range-bound trading pattern into the following week, with a modest upward trajectory as the Hari Raya holiday approaches, according to an analyst. Mohd Sedek Jantan, head of investment research at UOB Kay Hian Wealth Advisors Sdn Bhd, indicated that the FTSE Bursa Malaysia KLCI (FBM KLCI) is currently fluctuating between 1,510 and 1,515, with key resistance at 1,550 and support at 1,500.
He noted that despite a significant correction in Malaysian equities due to various unrelated factors, external challenges such as US import tariff risks, the ongoing Russia-Ukraine conflict, and worries regarding China’s economic stability may gradually ease, contributing to a potential stabilization of foreign equity outflows.
Throughout the previous trading week, the FBM KLCI encountered cautious trading following heightened investor prudence and fund reallocations, influenced by various global factors, including trade tensions and central bank policies. The index experienced a decline of 6.70 points, closing at 1,505.45, down from 1,512.15 the prior week.
Additionally, other indices demonstrated mixed performance: the FBM Emas Index rose by 5.65 points, while the FBMT 100 Index fell by 8.45 points. The FBM Emas Shariah Index increased by 37.59 points, and the FBM 70 Index surged by 149.60 points. Conversely, the Financial Services Index declined significantly.
Trading turnover saw a slight increase, with a total of 16.55 billion units valued at RM12.15 billion, compared to 16.40 billion units valued at RM14.47 billion the preceding week. Within this, the Main Market volume reduced significantly, and trading on warrants also saw a decrease. The Bursa Malaysia and its subsidiaries were closed on Tuesday in observance of the Nuzul Al-Quran public holiday.
In summary, Bursa Malaysia is expected to continue a range-bound trading pattern with slight upward movements leading into the Hari Raya holiday. Despite recent corrections and external headwinds, the market may stabilize as certain challenges diminish. Continued monitoring of trading indices will be essential as the market adjusts to evolving economic conditions.
Original Source: www.bernama.com
