KUALA LUMPUR: Bursa Malaysia is expected to trade in a range-bound mode next week as investors continue to monitor developments in the US-Iran nuclear negotiations and assess the sustainability of the recently announced peace agreement.
IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said that while geopolitical risks have moderated, uncertainty remains over the implementation of the deal and the pace of normalisation in the Strait of Hormuz.
On the positive side, he said the interim peace agreement signed last week and the partial resumption of oil flows through the Strait of Hormuz have helped ease near-term inflation concerns, supporting overall market sentiment.
Lower energy prices could improve the outlook for consumer-related sectors, airlines, logistics and selected manufacturing companies by reducing input and transportation costs.
“Domestically, the market should continue to find support from improving economic fundamentals. We expect the FBM KLCI to trade above the 1,700 range next week as investors balance improving geopolitical sentiment,” he told Bernama.
For the week just ended, Bursa Malaysia extended its gains for a seventh consecutive session, supported by strong buying in selected blue-chip and heavyweight counters.
On a Friday-to-Friday basis, the key index rose 28.40 points to 1,712.03 from 1,683.63 a week earlier.
On the index board, the FBM Emas Index soared by 206.43 points to 12,681.05, the FBMT 100 Index strengthened 203.68 points to 12,519.62, the FBM Emas Shariah Index jumped 136.36 points to 12,558.66, while the FBM Mid 70 Index garnered 278.44 points to 18,162.58, and the FBM ACE Index leapt 123.85 points to 4,792.52.
By sector, the Plantation Index swelled 121.14 points to 8,873.22, the Energy Index declined 9.10 points to 766.27, the Financial Services Index surged 560.22 points to 20,204.58, and the Industrial Products and Services Index trimmed 6.36 points to 190.57.
Weekly turnover decreased to 16.92 billion units valued at RM14.62 billion from 17.32 billion units valued at RM13.74 billion a week earlier.
The Main Market volume expanded to 9.73 billion units valued at RM13.06 billion from 9.48 billion units valued at RM12.06 billion previously.
Warrants turnover slipped to 4.18 billion units valued at RM538.65 million compared with 5.28 billion units valued at RM815.97 million last week.
The ACE Market volume expanded to 2.99 billion units valued at RM1.01 billion from 2.55 billion units valued at RM854.07 million in the previous week. – BERNAMA
