Bursa Malaysia Set for Upward Momentum as KLCI Nears 1,700 on Stronger Sentiment
KUALA LUMPUR: Bursa Malaysia is expected to maintain an upward trajectory in the coming week, with the FBM KLCI poised to approach or break the 1,700 psychological level, supported by improving investor sentiment and a return of foreign fund inflows.
IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said market positioning has turned more constructive following a reassessment of geopolitical risks in West Asia, alongside stabilising oil prices that have eased broader market concerns.
He noted that Brent crude prices remaining below US$100 per barrel since midweek have helped anchor short-term inflation expectations, reducing overall risk premiums.
At the same time, the sustained rally in US equities over seven consecutive sessions is expected to spill over into emerging markets, including Malaysia, signalling strengthening global fundamentals and a recovery in risk appetite.
“This reflects a gradual return of confidence among global investors, which is supporting capital flows into regional markets,” he said.
Mohd Sedek added that foreign investors have shifted to net buying on Bursa Malaysia, with several consecutive days of inflows marking an early phase of renewed engagement with Malaysian equities.
“The return of foreign funds is significant, as it plays a major role in market liquidity and index direction,” he noted.
Geopolitical Developments Remain in Focus
Another analyst said market participants are continuing to monitor developments in West Asia, particularly upcoming negotiations between the United States and Iran, which could influence market sentiment.
For the week ended, Bursa Malaysia traded within a narrow range, in line with regional markets amid ongoing external uncertainties.
On a Friday-to-Friday basis, the FBM KLCI declined 4.19 points to 1,691.31 from 1,695.50 previously.
Among key indices, the FBM Top 100 Index rose 8.54 points to 12,259.66, while the FBM Emas Index gained 20.50 points to 12,412.66. The FBM Emas Shariah Index increased 19.77 points to 12,289.33, the FBM ACE Index jumped 120.06 points to 4,429.98, and the FBM Mid 70 Index advanced 180.03 points to 17,320.97.
Sector-wise, the Financial Services Index fell 65.06 points to 19,784.66, the Plantation Index declined 188.26 points to 8,967.25, while the Industrial Products and Services Index edged up 1.16 points to 185.91. The Energy Index slipped 5.27 points to 813.25.
Trading Activity Moderates
Total market turnover declined to 15.14 billion units worth RM14.39 billion, compared with 17.79 billion units worth RM18.83 billion in the previous week.
Main Market volume dropped to 9.44 billion units valued at RM13.32 billion from 11.56 billion units worth RM17.73 billion earlier.
Warrants turnover fell to 4.28 billion units valued at RM529.01 million from 4.92 billion units valued at RM616.50 million, while ACE Market volume stood at 1.40 billion units worth RM544.66 million compared with 1.31 billion units worth RM479.05 million previously.
Overall, Bursa Malaysia is expected to remain on a firmer footing if external conditions continue to improve and foreign inflows sustain market momentum.
-wilayah.com.my
