BURSA MALAYSIA LIKELY TO TRADE HIGHER NEXT WEEK

By Karina Imran

KUALA LUMPUR, June 29 (Bernama) -- Bursa Malaysia is poised to trade higher next week, driven by expectations of a Federal Reserve (Fed) rate cut following the release of key US inflation data on Friday, according to an analyst.

UOB Kay Hian Wealth Advisors head of investment research Mohd Sedek Jantan said the US monthly core personal consumption expenditures (PCE) for May 2024 increased by 0.1 per cent, supporting expectations of Fed rate reductions starting in September.

"As such, the FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to trade within the range of 1,610 to 1,650 next week. Additionally, we foresee the ringgit strengthening in the coming week.

“Due to the soft PCE data, gold futures are expected to remain bullish, trading within the US$2,320 to US$2,350 range. Stock market risk is increasing as valuations extend and rallies occur with thinner breadth,” he told Bernama.

Meanwhile, Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng expects Bursa Malaysia to remain in consolidation mode next week, supported by attractive valuations and continued backing from local institutions.

However, he cautioned that increasing global volatility may prompt more cautious trading in the upcoming week.

"The FBM KLCI continued its retracement last week but experienced a small rebound on Friday. Despite the rebound, we foresee that the KLCI may undergo further consolidation and establish a base in the short to mid-term. 

"Consequently, we anticipate the benchmark index will fluctuate within the 1,580-1,600 range next week, with immediate support at 1,575, followed by 1,565, and resistance at 1,610 followed by 1,619," he added.

On a Friday-to-Friday basis, the FBM KLCI eased 0.28 of-a-point to 1,590.09 from last week’s 1,590.37.

During the week, the market was mostly in red due to profit-taking in tandem with most regional markets' performance. 

On the index board, the FBM Emas Index decreased 28.43 points to 12,216.40, the FBMT 100 Index sank 47.92 points to 11,798.06, the FBM Emas Shariah Index dipped 26.47 points to 12,552.70, the FBM 70 Index dropped 85.22 points to 17,841.89, and the FBM ACE Index gave up 15.77 points to 5,773.28.

Sector-wise, the Energy Index slid 7.58 points to 955.42, the Industrial Products and Services Index eased 1.94 points to 195.85, and the Plantation Index slipped 45.66  points to 6,982.72. 

However, the Financial Services Index put on 38.20 points to 17,454.73.

For the week just ended, turnover increased to 23.5 billion units valued at RM16.91 billion against 22.37 billion units valued at RM17.69 billion in the preceding week.

The Main Market volume shrank to 12.71 billion shares worth RM14.66 billion from 12.93 billion shares worth RM15.49 billion a week ago.

Warrants turnover swelled to 6.36 billion units valued at RM805.4 million versus 5.13 billion units valued at RM702.50 million last week.

The ACE Market volume expanded to 4.39 billion shares worth RM1.45 billion compared with 4.30 billion shares worth RM1.49 billion previously.

-- BERNAMA