Bursa Malaysia could see technical rebound, bargain hunting next week

KUALA LUMPUR, Sept 12 — Selective bargain hunting may materialize on Bursa Malaysia next week, following recent sell-offs, based on insights from an analyst. Rakuten Trade Sdn Bhd's Thong Pak Leng, vice-president of equity research, anticipates the FTSE Bursa Malaysia KLCI (FBM KLCI) to consolidate around the current levels, with a potential technical recovery if global risk sentiment stabilises. "We foresee the benchmark index to oscillate within the range of 1,680-1,710 for the forthcoming week," he informed Bernama.

Kenneth Leong, head of research at Berjaya Research Sdn Bhd, predicts the benchmark index to remain under pressure due to ongoing geopolitical uncertainties and rising concerns about global inflation and interest rates. He stated that investors will be observing the Federal Reserve's interest rate decision closely next week, with markets pricing in a 25 basis point rate hike, following a surge in oil prices and renewed inflationary pressures.

Leong highlighted that a rate hike would be the first since July 2023 and could further dampen global risk appetite and emerging-market equities. He noted that the local bourse has recently dipped below the 1,700 psychological level, creating a bearish candlestick formation. Consequently, Leong identified 1,680 points and 1,676 points as potential support levels, while resistance is now at 1,714 points, followed by 1,722 points.

The FTSE Bursa Malaysia KLCI (FBM KLCI) experienced a decline of 21.36 points, reaching 1,686.74 at yesterday's close from 1,708.10 a week prior. Within the index, the FBM Emas Index dropped by 115.25 points to 12,510.20, the FBM Top 100 Index decreased by 123.62 points to 12,305.64, while the FBM Emas Shariah Index rose by 36.11 points to 12,396.81.

The FBM ACE Index increased by 42.76 points to 5,260.23, and the FBM Mid 70 Index fell by 40.56 points to 17,728.64. By sector, the Energy Index rose by 8.81 points to 814.43, the Plantation Index improved by 98.10 points to 9,436.02, the Industrial Products and Services Index climbed by 1.82 points to 188.78, and the Financial Services Index dropped by 539.28 points to 19,622.21.

Trading volume for the week reached 18.97 billion units, valued at RM15.53 billion, up from 17.97 billion units, valued at RM14.14 billion the previous week. Main Market volume eased to 11.62 billion units valued at RM13.89 billion, down from 12.00 billion units the preceding week. Warrants turnover expanded to 4.40 billion units, valued at RM624.83 million, compared to 3.83 billion units, valued at RM542.71 million the previous week.

ACE Market volume strengthened to 2.93 billion units valued at RM1.00 million, compared to 2.13 billion units, valued at RM743.53 million in the prior week.