KUALA LUMPUR: Bursa Malaysia is expected to experience cautious trading this week, with the FTSE Bursa Malaysia KLCI (FBM KLCI) predicted to fluctuate between 1,580 and 1,600 points, according to Rakuten Trade Sdn Bhd’s Thong Pak Leng.
Market players are likely to focus on construction, utilities, and technology stocks due to positive sector developments.
The market’s outlook remains uncertain amid ongoing US-China trade tensions. Thong advised traders to adopt a “wait-and-see” approach before making moves.
SPI Asset Management’s Stephen Innes highlighted market optimism fuelled by the US-China trade war’s “lite” expectations and an AI-driven tech surge.
However, he cautioned that risks hinge on US trade policy, particularly President Donald Trump’s stance on China.
Investors remain cautiously optimistic, betting on de-escalation rather than an all-out trade war.
Innes sees support for the FBM KLCI around 1,580 and resistance at 1,610, but warned that Trump’s actions could shift market sentiment rapidly.
For the week, the FBM KLCI showed gains driven by bargain hunting in construction, utilities, and financial sectors, bolstered by initiatives like the Johor-Singapore Special Economic Zone and data centre projects.
External risks, such as Trump’s tariffs, also weighed on investor sentiment. Despite the pause in US tariffs on Mexico and Canada, a 10 per cent tariff on Chinese imports remains in place. The FBM KLCI rose 33.99 points to 1,590.91, up from 1,556.92 last week.
Sector indices, including financial services, plantations, and industrials, saw gains. Trading volume surged to 13.05 billion units valued at RM10.46 billion, up from 6.42 billion units worth RM6.30 billion the previous week.
– BERNAMA
