Kuala Lumpur:Bursa Malaysia is predicted to experience bargain hunting next week, with the FTSE Bursa Malaysia KLCI (FBM KLCI) expected to trade within the 1,660-1,690 range, according to an analyst.
According to BERNAMA News Agency, Thong Pak Leng, vice-president of equity research at Rakuten Trade Sdn Bhd, stated that investors may continue to be cautious about the Malaysian market due to elevated United States Treasury yields, which could impact regional fund flows. However, the recent market correction has made selected blue-chip stocks more attractive.
Thong noted that the market's trajectory will also be influenced by global bond yield developments and investor risk appetite. With the FBM KLCI's relative strength index near oversold territory, bargain hunting may emerge in strong heavyweights, notably banks and defensive stocks, if external conditions stabilize. He mentioned that 1,670 remains a critical resistance level that might limit short-term recovery.
Thong also highlighted that China's Purchasing Managers' Index (PMI) and the US employment report could affect regional risk appetite and bond yield directions.
In the week ending yesterday, although bargain hunting lifted the index early in the week, gains were limited by high US Treasury yields, rising oil prices, geopolitical uncertainties, and foreign selling. The benchmark index ended slightly lower on Friday due to concerns over rising yields and escalating tensions in West Asia.
On a weekly basis, the FBM KLCI increased by 6.06 points to close at 1,671.62 from 1,665.56 a week earlier. The FBM Emas Index rose by 44.92 points, the FBM Top 100 Index gained 33.09 points, while the FBM Emas Shariah Index dropped by 5.76 points. The FBM ACE Index increased by 288.26 points, and the FBM Mid 70 Index slightly gained 0.89 of a point.
Sector-wise, the Energy Index advanced by 41.21 points, while the Plantation Index decreased by 161.57 points. The Industrial Products and Services Index slid by 1.14 points, and the Financial Services Index accumulated 137.86 points.
Weekly turnover increased to 17.11 billion units worth RM14.07 billion from the previous week's 15.02 billion units worth RM14.18 billion. The Main Market volume rose to 10.41 billion units valued at RM12.31 billion, while warrants turnover widened to 4.21 billion units worth RM661.61 million. The ACE Market volume increased to 2.48 billion units valued at RM1.09 billion.