Kuala lumpur: Bursa Malaysia could see selective bargain hunting next week following the recent sell-off, particularly in fundamentally sound blue-chip stocks that have been marked down amid the broader risk-off environment, an analyst said.
According to BERNAMA News Agency, Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng indicated that external developments are likely to remain the key driver of sentiment, with movements in crude oil prices and United States (US) Treasury yields closely watched. Thong explained that the FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to consolidate at current levels, with potential for a technical recovery if global risk sentiment stabilizes. He anticipates the benchmark index to trend within the range of 1,680-1,710 for the upcoming week.
Meanwhile, Berjaya Research Sdn Bhd head of research Kenneth Leong projects the benchmark index to stay under pressure due to ongoing geopolitical uncertainties and rising concerns over global inflation and interest rates. Investors are set to closely monitor the Federal Reserve's interest rate decision next week, with markets increasingly pricing in a 25 basis point rate hike amid elevated oil prices and renewed inflationary pressures. Leong noted that a rate hike would mark the first increase since July 2023 and could further impact global risk appetite and emerging-market equities. Technically, he observed that the local bourse has formed a bearish candlestick, dipping below the 1,700 psychological level, with next supports at 1,680 points and 1,676 points, and immediate resistances at 1,714 points followed by 1,722 points.
On a Friday-to-Friday basis, the FTSE Bursa Malaysia KLCI (FBM KLCI) declined 21.36 points to 1,686.74 at the close from 1,708.10 a week earlier. On the index board, the FBM Emas Index fell 115.25 points to 12,510.20, the FBM Top 100 Index lost 123.62 points to 12,305.64, but the FBM Emas Shariah Index added 36.11 points to 12,396.81. Additionally, the FBM ACE Index inched up 42.76 points to 5,260.23, while the FBM Mid 70 Index tumbled 40.56 points to 17,728.64.
By sector, the Energy Index advanced 8.81 points to 814.43, and the Plantation Index improved 98.10 points to 9,436.02. The Industrial Products and Services Index rose 1.82 points to 188.78, while the Financial Services Index dipped 539.28 points to 19,622.21. Weekly turnover increased to 18.97 billion units worth RM15.53 billion from 17.97 billion units worth RM14.14 billion in the prior week. Main Market volume eased to 11.62 billion units valued at RM13.89 billion, compared to 12.00 billion units valued at RM12.85 billion previously. Warrants turnover expanded to 4.40 billion units worth RM624.83 million versus 3.83 billion units worth RM542.71 million last week. ACE Market volume strengthened to 2.93 billion units valued at RM1.00 million, compared with 2.13 billion units valued at RM743.53 million in the previous week.