Bursa Malaysia likely to trade with an upside bias next week
KUALA LUMPUR: Bursa Malaysia is expected to trade with an upside bias next week, with the benchmark index seen within the 1,725-1,750 range next week, an analyst said.
Bursa Malaysia is forecasted to trade with an optimistic outlook next week, according to an analyst. The benchmark index is anticipated to remain within the 1,725-1,750 range. Kenny Yee, head of research at Rakuten Trade Sdn Bhd, explained that the market is likely to stay in a consolidation phase, as investors continue to assess strong corporate profits alongside persistent foreign selling and uncertainties about global interest rates and geopolitical events.
While corporate earnings are predicted to stay robust, persistent net foreign outflows have limited the index's upside potential. Mohd Sedek Jantan, director of investment strategy and country economist at IPPFA Sdn Bhd, added that the FTSE Bursa Malaysia KLCI (FBM KLCI) should continue its upward trend, but profit-taking may occur if the index surpasses 1,740 following recent gains.
He emphasized that the direction of global bond yields will be critical, especially for Malaysian banks. A solid recovery in Malaysian banking stocks would likely depend on stable global bond yields, robust domestic earnings, and increasing investor inflows. Yantan stated that the market is expected to remain positive but increasingly selective, with the 1,740 level, US Treasury yields, Brent crude prices, and foreign flows playing a significant role in determining the sustainability of the next leg higher.
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