BURSA MALAYSIA LIKELY TO TRADE SIDEWAYS BETWEEN 1,700 AND 1,730 NEXT WEEK

By Abdul Hamid A Rahman, Kuala Lumpur, April 25 (Bernama) — Bursa Malaysia’s key index is likely to trade sideways between 1,700 and 1,730 next week, according to Rakuten Trade Sdn Bhd’s vice-president of equity research, Thong Pak Leng. He anticipates the FTSE Bursa Malaysia KLCI to remain in a consolidation phase with a slight upward bias, driven by bargain hunting and positive market sentiment. Thong Pak Leng noted that while downside risks are currently contained, sustained gains will hinge on clearer external direction, particularly developments in geopolitical tensions and global market cues. Meanwhile, IPPFA Sdn Bhd’s director of investment strategy and country economist Mohd Sedek Jantan emphasized that focus is shifting to the upcoming U.S. Federal Open Market Committee (FOMC) meeting on April 28–29, where the interest rate policy is expected to remain unchanged at 3.50% to 3.75%. This aligns with guidance reinforcing a higher-for-longer monetary policy stance amid persistent inflation. Additionally, the U.S. earnings season has provided some support, with early releases indicating the S&P 500 is on track for robust earnings growth. However, Mohd Sedek cautioned that this may not fully offset risks from geopolitical tensions and energy price volatility. A shortened trading week due to Labour Day holidays is also likely to reduce market liquidity. Overall, market resilience remains fragile, with the FBM KLCI expected to stay in a consolidation phase amid an increasingly complex external environment. For the week just ended, Bursa Malaysia traded mostly higher. The FBM KLCI rose 25.13 points to 1,720.34 from 1,695.21 a week earlier. Sector-wise, the Financial Services Index surged significantly, while the Industrial Products and Services Index and Energy Index saw modest gains. The Plantation Index declined slightly. Weekly turnover increased to RM15.16 billion, with the Main Market volume expanding to RM13.66 billion. Warrants turnover also rose to RM681.05 million, while ACE Market volume decreased to RM812.78 million.