Bursa Malaysia Expected To Trade Range-Bound Next Week After FBM KLCI Breaks 1,750 Level
Market Sentiment Supported By Wall Street Records and Global AI Momentum
KUALA LUMPUR — Bursa Malaysia is expected to trade in a range-bound manner next week after the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) successfully crossed the key psychological level of 1,750 points.
Market analysts said investor sentiment continues to be supported by improving global risk appetite as well as the strong performance of United States stock markets, which have repeatedly reached record highs.
Director of investment strategy and country economist at IPPFA Sdn Bhd, Mohd Sedek Jantan, said the artificial intelligence (AI) and technology theme remains the primary driver of global markets.
However, he noted that investor focus is gradually shifting away from the so-called “Magnificent Seven” technology giants toward second-tier AI-related companies including infrastructure, software and semiconductor ecosystem players.
The “Magnificent Seven” refers to Nvidia, Microsoft, Alphabet, Amazon, Meta Platforms, Apple and Tesla, which are currently regarded as Wall Street’s most dominant technology firms.
“This shift could trigger short-term volatility and profit-taking activities across technology counters if earnings momentum begins to moderate,” he said.
He added that investors are also closely monitoring geopolitical developments in West Asia, particularly movements in global crude oil prices.
According to him, crude oil prices remaining above US$100 per barrel could continue fuelling inflation concerns and weaken broader investor sentiment.
However, any significant decline in oil prices could help strengthen positive market sentiment globally.
During the past week, Bursa Malaysia mostly closed higher amid support from regional market performance, developments in West Asia and Bank Negara Malaysia’s decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent.
On a weekly basis, the FBM KLCI climbed 26.04 points to close at 1,748.06 from 1,722.02 previously.
The FBM Emas Index gained 206.49 points to 12,930.23 while the FBMT 100 Index rose 212.47 points to 12,772.53.
The FBM Emas Shariah Index added 119.95 points to 12,838.31 while the FBM Mid 70 Index surged 398.25 points to 18,484.22.
Meanwhile, the FBM ACE Index slipped 6.79 points to 4,611.32.
By sector, the Plantation Index fell 100.90 points to 8,838.41 while the Industrial Products and Services Index edged down 1.66 points to 194.65.
The Energy Index declined 28.36 points to 812.32, although the Financial Services Index jumped 488.78 points to 20,373.81.
Weekly market turnover expanded to 16.99 billion units valued at RM16.37 billion compared with 14.15 billion units worth RM13.03 billion in the previous week.
-wilayah.com.my
