Dip-buyers could lift Bursa next week, but oil and foreign selling may rattle it

KUALA LUMPUR, Oct 24 — Bursa Malaysia is poised for an upward trend next week, with analysts predicting the benchmark index to trade within the 1,600-1,620 range. This optimism stems from a resurgence in investors' appetite for risk, according to Rakuten Trade Sdn Bhd vice-president of equity research Thong Pak Leng. Thong expects bargain hunters to intensify as investors capitalize on improving stock valuations.

However, he warns that elevated oil prices, geopolitical concerns, and persistent foreign selling could lead to intermittent volatility. Thong remains cautiously optimistic about the FBM KLCI, foreseeing a mildly positive bias driven by selective accumulation of fundamentally strong stocks. He attributes this to Malaysia's robust economic foundations and relatively stable inflation, which should sustain corporate earnings.

Recent market corrections have made select blue-chip stocks more appealing, especially in the banking, plantation, and utilities sectors. Over the past week, the local bourse experienced a slight decline, mirroring regional market trends and Wall Street sentiments due to uncertainty surrounding AI investment sustainability.